How is a lost engagement ring covered under an individual jewelry policy thru renter's insurance?

Question

My fiance recently purchased an engagement ring for me off ebay for $250. I got it appraised through an indiviudal jewelry appraiser and it was worth $4,000. (I know an awesome deal) We were in the middle of moving (had movers helping us) and now I can't find it anywhere. Between packing, cleaning, and everything else associated with moving, I'm not sure when the ring came off...It was about a size too big, but I didn't want to get it re-sized just yet. I was enjoying it and didn't want to part with it right away.

We searched high and low and I am devastated. I've had it for all of 10 days and I don't know how the insurance company will look at this. We had it insured as soon as I got it appraised, but don't know how I should file a claim.I don't know if the movers saw it and pocketed it (they said they did not see a ring) and I don't know if I should file a police report.

So, I'm wondering if the insurance will consider the price paid for it, or the worth in determing an amount to award (if any). Their jargon is awarding money based on the lesser of the the amount you need to purchase it back or the amount of the ring.

Who is to say that we can find another deal like that? Will they really give us only $250?

Thank you for any and all advice/comments.

Answer 1

If you forwarded your appraisal to your insurance company and they agreed to valuation on your appraisal, then they have probably been charging you premiums based on what the appraisal value is. In this case, you should be covered for the appraised amount ($4000).

Depending on the company you are insured with, most major insurance company policies have what is called "mysterious disappearance" coverage. I would think your loss would be covered under that type of coverage. You made an assumption that the movers may have stolen the ring but you do not know that for sure.

The right thing to do for the insurance company is to put you back where you were before your loss. If they say all they will pay for the ring is $250, then I would ask them to try and find you a ring with "like" quality and appraised dollar amount as the amount on your appraisal. After all, that is what your premiums are based on.

Hope this helps.

Answer 2

yep, they're most likely going to give you $250.  That's what your receipt is for.  

If they don't, what they're going to do is send that appraisal off to their wholesaler, to see what their wholesaler would charge for the exact ring.   And they might just have that ring shipped to you.

See, those appraisals you get at retail stores are always "inflated", sometimes seriously inflated.  If you want "agreed value" for an item of jewelry, you can get it, but you have to pay more for it up front.

Answer 3

If you have a seperate policy written or it is added to an existing policy then they usually insure for the appraised value. They would have had you send over a copy of the appraisal when the policy was initiated. Usually there is a deductible with these policies so they would give you the value minus the deductible.

Answer 4

Several issues here...

1.)  If you have a replacement cost policy then they owe for what it cost to buy the ring again for the average market retail cost. This would be the replacement cost value. I'm a property adjuster and I handle personal property specifically. We are not allowed to use ebay or sale prices because, like you say, we can't guarantee that you'll ever find it at that price again. However, you'd have to prove that it was worth $4000. You can do this by getting a copy of the appraisal.

2) Lost jewelry is generally not covered. However, theft or attempted theft is.

3.) Stolen jewelry is subject to a special limit unless you had it specifically scheduled on your policy. The max limit is normally around $2,500 or $5,000 depending on your policy.

4.) Your policy requires you to file a police report before filing a claim. This is explained in the "Duties After Loss" portion of your policy