Every question, every answer, every source

If your jewellery insurance payout is much lower than you expected, the first thing to do is ask your insurer for an itemised breakdown of the settlement. You should be able to see how they calculated the amount and what, if anything, they deducted.

In New Zealand, a lower payout doesn't necessarily mean the insurer has made a mistake. It could reflect your policy's excess, the way the jewellery is valued, a policy limit, or the difference between a cash settlement and the cost of replacing the item.

1. Check what they've deducted

Look at your settlement letter, claim assessment and policy wording. Check these items:

Possible deduction or adjustment	What to check
Policy excess	Has your standard or special excess been taken off?
Depreciation or wear and tear	Have they reduced the value because of the item's age or condition? Does your policy allow this?
Jewellery sub-limit	Is there a maximum payout for jewellery, valuables or an item that wasn't separately specified?
Valuation difference	Have they used a lower value than your jewellery valuation, receipt or appraisal?
Replacement versus cash settlement	Are they paying a cash amount rather than the cost of replacing the jewellery through their supplier?
Underinsurance or other adjustments	Have they applied a policy condition that reduces the amount payable? Ask them to identify the exact clause.

Important: Not every insurer can automatically deduct depreciation or apply every adjustment listed above. Whether a deduction is justified depends on your policy wording and the type of settlement.

2. Ask the insurer for a written breakdown

You can send them this message.

Email

Subject
: Request for itemised jewellery claim settlement breakdown

Kia ora,

I'm writing about my jewellery insurance claim, reference [claim number]. The settlement amount offered is considerably lower than I expected, and I'd like to understand how it was calculated.

Please provide a written, itemised breakdown showing:

• The value you have assessed for each item of jewellery.
• The valuation method used and any supporting valuation or assessment reports.
• Every deduction or adjustment applied, including the policy excess, depreciation, policy limits or any other reduction.
• The specific policy wording or clause relied on for each deduction.
• Whether the settlement is based on replacement value, agreed value, market value or another valuation method.
• How I can challenge the assessment if I disagree with the valuation or deductions.

Please also provide copies of the relevant claim assessment documents and explain how the final payout was calculated from the assessed value.

I would appreciate a review of the settlement if any deductions or valuations have been applied incorrectly.

Ngā mihi,

[Your name]

3. Compare their figures with your evidence

Gather the following documents before deciding whether to challenge the amount:

• Your jewellery valuation certificate or appraisal.
• Original purchase receipts, photographs and any certificates for diamonds or gemstones.
• Your insurance schedule showing the insured amount for each item.
• The insurer's settlement offer and claim assessment.
• Any jeweller's replacement quote or independent valuation you can obtain.

Pay particular attention to whether the insured amount was an agreed value, a specified sum insured or simply a policy limit. These are not necessarily the same thing as the amount the insurer must pay for a claim.

4. If the figures still don't add up, make a formal complaint

In New Zealand, you can raise a complaint directly with your insurer and request a reassessment. If you cannot resolve it, you can approach the insurer's independent dispute resolution scheme, which is free for eligible consumers. Making a complaint about your financial service providerDisputes and consumer protection

• Start here: New Zealand Consumer Protection — Complaining about a financial service provider
• If your insurer belongs to Financial Services Complaints Ltd, you can make a complaint to FSCL. If it belongs to another scheme, ask the insurer which scheme handles its complaints. Make a complaintSearch financial service providers

I can help you work out exactly what's missing

How much were you expecting to receive, and how much has the insurer offered?

If you also tell me whether the jewellery was individually specified on your policy and whether the insurer gave you a breakdown, I can help you identify which figures and policy terms to question first. You can share the relevant wording with personal details and claim numbers removed.