engagement ring insurance claim

richardsims

Hello,

I was after some advice and thought this might be a great place to get some second opinions ;-)

I was planning to propose to my girlfriend a few months ago and bought an engagement ring in the UK. Amazingly the ring that I was after (3 stone, platinum, 0.75 carat, G/VS2) was in a sale, £1600 vs the £3250 normal selling price so that's the one I went for.

Unfortunately it was stolen while we were on holiday, but luckily I had insurance cover through my household and travel insurance. (£2500 single item limit for my contents, £500 for my travel insurance).

In all fairness the insurance company couldn't have been better in sorting out my claim, and they are offering me two options.

Either cash (~£2000) to settle the claim, or a 'like-for-like' replacement. Unfortunately the 'like-for-like' is just a £2000 voucher to use at 'their' jewellers (Ernst and Jones).

Now basically the same ring is still available at the original jewellers for ~£3250. However I did only pay approximately 1/2 that at the time: which is mainly why I'm confused as to what to do.

Any thoughts? I reckon I have two options:

1) Go with the £2000 settlement: see what I can negotiate with the original jewellers and stump up the difference
2) Argue with the insurance company that even though I only paid £1600, the replacement cost is currently £3250 and try to get them to raise the settlement

I would prefer to get as similar to the original ring as possible as it was one that we both liked.

Not at all sure where I stand legally as the insurance policy is a little bit unclear.

R

InsideInsurance

How much did you have it declared on your insurance for?

You will run into problems if you claim it is £3250 if you hadn't specified it as such given your single item limit of £2,500.

What is your excess on your policy?

richardsims

Hello,

Excess on the policy was £50. Annoyingly I didn't declare it on the policy, so I completely understand that I won't get any more than £2500-excess: (unless both insurance policies pay out up to the limit...?) (so 2500+500-both excesses).

My main question is do I dispute the settlement amount with the insurance company with a view to getting them to pay out up to policy limit (£2500-excess), or should I be happy with the £2000?

...and do insurance policies 'stack-up' like that? Can I claim the policy maximum off both?

The real dilemma for me is the amount I paid (£1600) vs the replacement value (£3250).

Incidentally I've been completely open with the insurance company regarding the above numbers.

Part of me is just grateful that I had insurance at all, and they are offering pay out effectively more than I paid for the ring, just not its current replacement value.

R

InsideInsurance

With normal home insurance contents averaging would apply and therefore because you under insured the item they would reduce the maximum payout by the same proportion. So as you insured it for circa 77% of its value they would pay out 77% of the insured value ie £1,925 which if you net off the excess comes to £1,875

I am however not a Home insurance expert and so not sure if averaging does or doesnt apply when you have a single item that has exceeded the limit of the Personal Possessions cover but not declared it.

Certainly my concern without having guidance from someone more into home claims than me is the fact that escalating it may prove that their original offer is more than it should be and it is withdrawn.

As to "stacking up", it depends on the wording of the policies. In most cases the wordings are such that the different policies overlay each other instead so you still get the same amount but the costs are shared by the two insurers.

phill99

Surely the value is based on the receipt value, not its retail 'worth'. The value is based on an open market transaction with a willing seller and a willing buyer. The fact that the transaction is so recent would confirm that is its value. If the had had it advertised as £10000, reduced to £1600, would you be asking for £10k?

richardsims

Hi Phill99,

I see what you're saying, but I think if I bought an item in a sale for £1,600 that was worth £10,000 I'd absolutely insure it for £10k.

R

Spamfree_2

Just use the 2000 to buy her a 2000 ring.

Mortgage_Reduction_Novice

Am I right in thinking you've essentially made £400 on this claim? Any you're considering asking for more?

richardsims

I admit it does seem like I've made £400 on the claim....but:

We chose a particular type of engagement ring together, and that's the one that I want to replace the stolen one with.

From a purely monetary point of view: yes, absolutely agree: I've 'made' money. However all I really want is to be able to purchase as close to the original one as I can.

That's mainly my dilemma at the moment. I'd be much happier if the insurance company could just replace it directly and I didn't have to worry about the value...

R

Spamfree_2

Talk about making things complictated!

Thank the lord the insurance company are even playing ball, never mind giving you back more than you lost!

themull1

If you didnt insure it seperately for the right amount, you'll just have to take what the insurance company offers you.