What is warranty in Insurance?

In jeweler’s insurance, warranties are statements made by the insured (the jeweler) regarding the condition, value, or other relevant aspects of the jewelry being insured. These warranties are important because they form the basis of the insurance contract and can affect the coverage provided. Here are some common warranties in jeweler’s insurance:

Warranty of Ownership: The jeweler warrants that they are the rightful owner of the jewelry or have the authority to insure it.

Warranty of Value: The jeweler warrants that the value declared for the jewelry is accurate and represents the current market value.

Warranty of Description: The jeweler warrants that the description of the jewelry (including its characteristics, such as carat weight, cut, clarity, etc.) is accurate.

Warranty of Good Faith: The jeweler warrants that they are acting in good faith and have disclosed all relevant information to the insurer.

Warranty of Security: The jeweler warrants that they will take reasonable precautions to protect the jewelry from loss or damage. Like specific safe, watchman, armed gun man, etc.

Warranty of Insurable Interest: The jeweler warrants that they have an insurable interest in the jewelry, meaning that they would suffer a financial loss if the jewelry is lost or damaged.

It’s important for jewellers to understand and comply with these warranties to ensure that their insurance coverage is valid and effective.

When purchasing insurance from inexperienced agents, banks, or insurance companies, important warranties that affect your claims may not be discussed. To avoid misunderstandings, consult with advisors who understand the insurances they have arranged for you.

Ambicaa Insurance, with over 20 years of experience in the jewelry industry, offers a unique advantage. We provide jeweler’s insurance with no specific warranties, ensuring that your insurance contract is more robust and capable during claims.