Scheduled Jewelry - When to Use Agreed Upon Value
Short answer: almost never! Agreed Value is reserved for jewelry that is unique and irreplaceable.
Although many insureds believe their jewelry is unique, the vast majority of jewelry is not one-of-a-kind. This is true for jewelry purchased either online or from brick-and-mortar retailers.
Because of our agencies appointment with JIBNA and their claim-ready underwriting procedures, in almost all cases a replacement can be made. A diamond of the same quality can be found; that specific setting can be ordered from the manufacturer or recreated. Based on an accurate appraisal description, the new jewelry will match the piece that was lost. This is what the standard policy (Actual Cash Value) is designed to do—to replace the lost item with one of like kind and quality, to make the insured whole.
Agreed Value coverage is reserved for jewelry that cannot be replaced. The insured may perceive Agreed Value, often supported by inflated valuations, as a way to come out ahead should a loss occur. A client who insists on Agreed Value may be setting up the insurer for a loss.
If an application asks for Agreed Value on an item that JIBNA judges to be not unique and irreplaceable, we will return it and ask that it be resubmitted as Actual Cash Value. (We ask for a corrected resubmission because in many states the application becomes part of the policy.)