Unless they’re written on an IM stated value policy, gem owners may still have a problem in the event of a loss. Property insurance coversg “property”, not it’s cash equivalent. Here’s the rub. Let’s say somebody buys a 1 carat diamond ring and gets a GOOD appraisal from a GIA certified jeweler for $20,000. If the ring is stolen or lost, the insurance company has the option to replace the item with one of “like kind and quality”. If a replacement can be had for $15,000, the insured has been returned to their “pre-loss condition”. However, if the insured doesn’t want to replace the item and wants cash, the settlement will be$15,000, not $20,000.
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Just what size diamond does this Broker consider to be a “big diamond?
Thank you.
Unless they’re written on an IM stated value policy, gem owners may still have a problem in the event of a loss. Property insurance coversg “property”, not it’s cash equivalent. Here’s the rub. Let’s say somebody buys a 1 carat diamond ring and gets a GOOD appraisal from a GIA certified jeweler for $20,000. If the ring is stolen or lost, the insurance company has the option to replace the item with one of “like kind and quality”. If a replacement can be had for $15,000, the insured has been returned to their “pre-loss condition”. However, if the insured doesn’t want to replace the item and wants cash, the settlement will be$15,000, not $20,000.