Have the stone, but what about insurance?

[peptidbond]

Good morning,

I poked around the site a bit, but I could not find an answer that applied to me. Here is my situation:

I bought an engagement diamond a few weeks ago. I am now shipping it to another city to have it mounted and appraised. It will then be shipped to Chicago where I will arrive in on the 11th. I will use the ring that night. The shipping is all insured, but I called my insurance agent to check on my personal coverage (in case of loss while in my possession). The company is AllState (who I am growing more and more upset with).

The agent stated that without an appraisal, my coverage on theft of jewelry is only $1000!!! I wear that amount on my right arm, nevermind what the left arm or what the girl wears. So, here is my question. How am I supposed to receive jewelry and have it insured inbetween receipt and appraisal? I asked the agent if they would cover replacement value before appraisal based off of the sales receipt and certificate and she said no. To me that seems incredible.

If I understand correctly, there is no way for me to insure any jewelry in between receipt and appraisal. Or at least, not with AllState.

Can anyone recommend a change in my insurance setup that might give me better coverage? I recently lost a classic automobile due to a collapsing building and it was poorly insured, so I am trying to be extra careful now.

 

[denverappraiser]

Most insurance companies will not insure an unmounted diamond because it’s the source of too much shady behavior on the part of consumers. If you received any documentation from the selling dealer, there is some possibility that they will bind a policy with the understanding that you intend to make a ring out of it. I believe Jewelers Mutual, Fireman’s’ Fund and Chubb all will do this if the paperwork is reasonably complete. Possibly others will as well (including Allstate although I think they won''t do this as an addition to an existing homeowners policy). Are you currently in possession of the diamond?

You should have the appraiser deliver their report to you by email so that you can bind the policy prior to their shipping to Chicago. This will cause the coverage to take effect immediately upon your accepting delivery from the carrier.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[peptidbond]

At this exact moment, the diamond is in transit to another city for mounting an appraisal. When the appraisal is finished, I will have it faxed to me and I will pass it on to the insurance company. Thank you for the recommendations. It just seemed odd to me that they would not cover the diamond against theft or damage due to fire, etc even with a sales receipt and certificate. I was not asking for replacement value, just to be insured for what I paid in case something horrible happend.

 

[denverappraiser]

You''re probably fully covered although it sounds like you had a brief window between the time you received it and when you shipped it where you were probably uninsured. It will be under the carriers policy while in transit and under the policy of the jeweler and/or appraiser while it''s in their care.

I think that most companies won''t insure unmounted stones because of problems with consumers cheating them. It''s easier to just say no than to examine each item on a case by case basis. Part of the reason for asking you to get it appraised is because this provides independent witness that the item actually exists, that it''s in your posession, that it is undamaged, that it''s properly described etc. This is also part of the reason that they require YOU to find the appraiser instead of supplying one of their own.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver