How does jewelry insurance work? Can't someone just lie and say they lost it then get the money back?

Question

Trust me, I would never do something like this, I'm just trying to figure out how this works.

What would stop someone from saying they lost their ring, get reimbursed by the insurance company, and then pawning off the ring that they never lost?

Answer 1

Well, that is fraud and if the company investigates and uncovers the fraud, that person will go to jail. At any rate, the loss results in the replacement of the jewelry, not cash in hand. The insurance company pays much less than the retail price on the jewelry appraisal for "like" merchandise. Their prices are wholesale-probably costs them around 1/3 the price of the retail appraisal.

Answer 2

Oh sure !! That has been done on more than one occasion. A few are also spending their free time counting the bricks on the wall of their cell.