An insured brought her diamond ring to a local jeweler for a routine cleaning. The jeweler found damage and recommended filing a claim. Our team checked the original appraisal on file, which raised questions about the identified break. However, close analysis confirmed a different break in the girdle. The insured was entitled her to a like-kind replacement or cash if she surrendered the chipped stone. But, the insured does not want to surrender the diamond for sentimental reasons.
Notable Timestamps
[ 00:52 ] - The insured's diamond had a girdle break, and while entitled to replacement, she didn't want to surrender it due to sentimental reasons.
[ 01:54 ] - Dana & Ali introduce themselves, Gemcor, and Digipraise.
[ 04:32 ] - When a claim involving a damaged stone is resolved, the stone belongs to the insurance company under the policy. However, the insured can often buy back the stone at its salvage value.
[ 05:01 ] - Jewelry claims require empathy because insureds often have deep emotional and sentimental attachments to their pieces. Approaching these conversations sensitively is crucial for a positive resolution.
[ 05:39 ] - For minor damage like a "small nick on the girdle," repairing the stone and compensating for loss in value is an option. This allows the insured to keep their original diamond and prevents further damage.
[ 09:50 ] - Before a claim can move forward, an expert on behalf of the insurance company must inspect the jewelry to verify damage. This prevents premature replacement recommendations.
[ 11:48 ] - Many clients are underinsured because they fail to update appraisals, leading to coverage being capped at outdated values and significant out-of-pocket costs.
[ 16:48 ] - Diamond certifications with a map of imperfections are vital tools. They help distinguish between pre-existing flaws and new damage, which directly impacts coverage decisions.
[ 15:44 ] - Ali & Dana provide a recap of the points above.
Your PLRB Resources
CE Course: Jewelry Valuation & Adjustment - https://members.plrb.org/education/courses/jewelry-valuation-amp-adjustment
Coverage Question: Agreed Value Settlement For Repair Of Jewelry - https://www.plrb.org/documents/wedding-ring-diamond-replaced-w-o-notifying-insurer-acv-for-original-ring-pcq-2009-10-08/?search=diamond%20value
Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.
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The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.
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