Two years ago, I lost my engagement ring in my house. I called my insurance company to report it...?

Question

I told them I would wait until after we moved in case I found it somewhere in the house. Well, I waited until we moved (about six months) and then followed through on the claim and had my ring replaced.

Well, here we are two years later and my rings were stolen/lost. (both engagement ring and wedding band) I took them off in a restaurant and when I went back for them they were gone. (Yes, I know it was really dumb to take them off)

I am SO very upset but know that I am totally responsible for this happening. I can't fathom filing another claim with my insurance company. The ring is worth about 6K.

My husband is saying I must file a claim. He compared it to having a car accident. He says if you were in an accident and then two years later were in another accident, you wouldn't think twice about having your insurance cover the repairs.

What should I do here???

Answer 1

Assuming that your insurance policy has an all-risks extension that covers jewellery away from the home then I would report the incident - hopefully you still have the receipts to prove loss. Your loss may be limited to a maximum single article value if the items were not specified (obviously I can't say more without seeing the policy and schedule)

The insurance company should send you a claim form (or they may just accept the telephone application) and you should send them the form (if needed) together with copies of the purchase receipts.

From then on you are going to have to fight to obtain compensation for your loss as the insurance company will probably (at least initially) say that you did not take reasonable care. You may eventually have to go through the compaints procedure and eventually to the Financial Ombudsman Service.

Answer 2

The decision to file a claim is strictly up to you and your husband.  That is a determination that only you can make.  

If you decide to file a claim, expect your insurance to be non-renewed.  Two mysterious disappearance claims in two years on the same item isn't going to sit well with any carrier.  Being non-renewed will force you to shop for new insurance and most carriers won't write a new policy when there have been multiple claims in the past three years.  You would have to access your state's pool insurance and that will probably be much more expensive than your current policy.

I'm not advising against filing a claim.  I'm just giving you insight into what the repercussions will most likely be.

Answer 3

For future reference, you should get a Personal Article Policy that covers your personal belongings like Jewelery, laptop, watches ect. It is very afforable and sometimes comes with no deductibles.

Answer 4

My wife works for a major insurance company. She said that it could go either way. Depends on several factors including whether or not you file a police report (they were stolen?). Proof you actually had them and of course if they were insured. Standard insurance for jewelry is $500. You would have to have taken out additional insurance for any amount over that. You would be surprised at what people do to collect insurance money. If you can think of it, they have heard it before. Oh, they also have access (how I don't know) if you had made claims with any other insurance companies. But if it is legitimate, file a claim.

Answer 5

Well you pay insurance for a reason. I would claim it. But if your husband does not care and you might risk loosing the policy perhaps he would simply replace it.

Answer 6

Comparing a car accident to rings getting stolen is a pretty poor comparison. Most people need their vehicles to get to work and to carry out their daily routine, plus many car accidents involve bodily injury. The same can't be said for a piece of jewellery!

As for whether to place a claim or not, two claims involving the same expensive item that close together in time can result in one of three things: a) reduction of coverage from All Risks to Named Perils with Theft coverage being reduced to Burglary (i.e. must be signs of forced entry); b) Increased premium along with increased deductible; c) Non-renewal by your insurer, which will result in difficulty in getting insurance elsewhere or a dramatic increase in premium if you do. Which scenario will play out depends on your insurer and what mood the underwriter is in when your policy comes up for renewal. Talk to your broker about this and ask them to present the above case as a hypothetical to the underwriter to gauge their reaction. At that point you can better decide whether to place a claim or not.