Jewelers Mutual question

[gmuthu.tc]

Hi guys

Looking for some advice.

I recently purchased a Batman and immediately applied for insurance from JM. Typically I have my watches insured via homeowners insurance but read advice on this forum to do otherwise. The premium was around $90 with no deductible.

After review, I was asked to submit a picture of the watch on a pdf background. After doing that, I was denied coverage a few days later citing the following -

1. Nature of Jewelry
2. Lack of Security
3. (Insurance) Credit

My insurance credit must have a two marks for hitting a deer and on another occasion, getting my car towed.

I spoke to JM and they mentioned my insurance credit did not look terrible but below their threshold for Rolex watches.

She mentioned Rolex watches have a high claim ratio, so their threshold is higher than usual, I also do not live in a gated community nor have a formal alarm system.

Anyway, the underwriter heard me out and I updated her more regarding about my exact situation which she took that to a manager and had it reviewed. Otherwise, I cannot reapply for another 3 years.

She circled back and said they would in fact offer me insurance but at a $500 deductible and $77 premium.

The watch was appraised at msrp.

My question - is this worth it? If something happens, I’ve paid the premiums, $500 deductible, and I assume tax? And this will apply to any watch I insure through them.

Should I try Chubb? Thoughts?

Thanks!


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[037]

Does your current home insurance company offer a Personal Articles Floater? If so, consider going that route instead. Typically they carry no deductible.

Otherwise, there's no harm in going with a $500 deductible. It's still far less than replacing a watch or paying for major damage. Insurance is for emergency use after a catastrophic event. It's not like you should expect to use it.

[piratepress]

I do not live in a gated community nor have a formal alarm system, either so it's hard to speculate what criteria they go by.

I just passed my first year insuring my BLNR with Jewelers Mutual and have renewed for a second year. As 037 pointed out, even with a $500 deductible, it's still very much worth it for a $10K watch!

[gmuthu.tc]

Thank you for the advice.

Yes, this is an either or scenario - the watch will be insured either way.

Just scratching my head as to which one. I’ll ask my insurance agent tomorrow. Thanks!


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[You]

That's reasonable. I would just go ahead and agree to it and have it insured. My Gold Sub has a $1,000 deductible and is $500 yearly.

[tyler1980]

if your watch gets stolen its going to cost you $577. Not a bad deal IMO. The out of pocket goes up $77 per year every time you renew, so its a long time before its not worth it.

either option is pretty fair

[Jack T]

Originally Posted by You

That's reasonable. I would just go ahead and agree to it and have it insured. My Gold Sub has a $1,000 deductible and is $500 yearly.

That seems expensive. Full replacement cost coverage? Who is your carrier?

[1William]

I believe part of the cost of ownership is insurance and service for the watches. I have had good experiences with JM but I have never had to file a claim. Unless you are willing and able to absorb the loss and replace the watch without any impact to your finances, pay up. I have been separating my Homeowners Insurance and jewelry for awhile now. A claim can get you cancelled and I would not like to lose both coverages at the same time.

[Ripcode]

I also applied to Jewlers Mutual (about a month ago) and was turned down due to credit?!?

We recently re-financed our home for a better rate and shorter term, so I know my credit is exemplary and clean.

I ordered a copy of my credit report and like I figured, I could not see any negatives on the report???

I sent an email to JM (letting them know what I had found out) and they said, they'd look into it.

I got tired of waiting and I added my 16610 to a personal policy on my home owners insurance for about $40 a year (no deductible).

Funny thing is, yesterday JM sent me an email asking for more details about the watch (that they had denied me on)....

[You]

Originally Posted by Jack T

That seems expensive. Full replacement cost coverage? Who is your carrier?

It's with Jewelers Mutual and it's for full replacement cost. My rate may be higher than normal as I'm only 21.

[handsfull]

From what ive understood - Its based largely on your zip code/address. Next is your personal credit/insurance rating.

I would never choose to use my homeowners insurance to cover ANYTHING other than my house as they are quick to cancel you for any claim, dont want the hassle.

[function12]

The problem with deductibles is going to be when and if you ever get robbed or have multiple losses. Then you will have to come up with lots of cash for replacements. Which just makes the loss that much worse.
We have all our stuff on a separate policy with State Farm and the premium is about 2% of the insured value.
Some companies won't write it because the premium is to small for them to even hassle with. So, they will do everything to try not to sell you a policy.

[gmuthu.tc]

My understanding of their credit check was specific to insurance credit score and not financial credit score.

I did not provide my SS# so I know they cannot actually pull my credit..

At best, maybe a soft pull? In discussing with the underwriter, we only talked about insurance credit score.

I called my AD today to discuss. Fortunately they have not had a claim experience yet with a Rolex but said for other jewelry claims, JM does not cut a check for the MSRP/Appraisal and usually the Jeweler gets stuck with the difference?

I also asked about taxes as my BLNR was appraised at MSRP. He was not sure but said they’ll figure it out if that unfortunate day comes.

Anyway, that’s my experience so far.


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