Insuring your ring (taken from the Daily News)
This was in the Daily News online today. I'll paste the article in case the link expires.
'Insurers aren't always
a diamond's best friend
When A burglar ransacked their New Jersey home, the owners were naturally upset. But they felt confident they would be reimbursed for their stolen jewelry.
In addition to their homeowner's policy, they had extra coverage for their diamond jewelry.
Most homeowner's insurance companies sell something called Scheduled Articles Floaters for high-value items like jewelry, silver, furs and fine art.
They allow you to provide a detailed description and appraised value for each item, and enable you to purchase added insurance to cover each in full in case of loss or theft.
The New Jersey couple made a claim for the appraised value of their scheduled jewelry. However, when the claim was paid, they got only the insurance company estimate of replacement value. 'We didn't get the full insured value we had paid for,' the woman said. 'Is this a fraudulent practice?'
No, explained Carollee Cabot, director of the Personal Premier Division at the Rollins Agency in Tuckahoe, Westchester County. 'The wording is written into the policy.'
Many insurance companies sell Scheduled Article Floaters under an Actual Cash Value basis. That means they have the option to replace lost or stolen items with the stated insurance amount or just pay you what they estimate it will cost to replace the items.
For example, you insure your diamond engagement ring for $10,000. Your ring is stolen and the company contacts jewelry stores and finds a similar ring for $8,000. The insurance company can just reimburse you $8,000, even though you have been paying for $10,000 of insurance.
Cabot recommends buying insurance from a company that provides Agreed Value on Scheduled Articles. With Agreed Value on the policy, the company will pay the insured value listed on your policy, not just the replacement cost, she said.
Originally published on April 11, 2005'
http://nydailynews.com/city_life/advice/v-echo/story/298531p-255621c.html
'Insurers aren't always
a diamond's best friend
When A burglar ransacked their New Jersey home, the owners were naturally upset. But they felt confident they would be reimbursed for their stolen jewelry.
In addition to their homeowner's policy, they had extra coverage for their diamond jewelry.
Most homeowner's insurance companies sell something called Scheduled Articles Floaters for high-value items like jewelry, silver, furs and fine art.
They allow you to provide a detailed description and appraised value for each item, and enable you to purchase added insurance to cover each in full in case of loss or theft.
The New Jersey couple made a claim for the appraised value of their scheduled jewelry. However, when the claim was paid, they got only the insurance company estimate of replacement value. 'We didn't get the full insured value we had paid for,' the woman said. 'Is this a fraudulent practice?'
No, explained Carollee Cabot, director of the Personal Premier Division at the Rollins Agency in Tuckahoe, Westchester County. 'The wording is written into the policy.'
Many insurance companies sell Scheduled Article Floaters under an Actual Cash Value basis. That means they have the option to replace lost or stolen items with the stated insurance amount or just pay you what they estimate it will cost to replace the items.
For example, you insure your diamond engagement ring for $10,000. Your ring is stolen and the company contacts jewelry stores and finds a similar ring for $8,000. The insurance company can just reimburse you $8,000, even though you have been paying for $10,000 of insurance.
Cabot recommends buying insurance from a company that provides Agreed Value on Scheduled Articles. With Agreed Value on the policy, the company will pay the insured value listed on your policy, not just the replacement cost, she said.
Originally published on April 11, 2005'
http://nydailynews.com/city_life/advice/v-echo/story/298531p-255621c.html
