Insurance after I get my diamond?

[BigToque]

Once I get my loose stone in the mail, I''ll have this diamond without a setting and uninsured.

From this point, am I supposed to take it to my local jeweller, uninsured, to have it mounted, then take it to get appraised in the setting, and then take the finished ring and appraisal to my insurance agent?

Is this the right way to go about this? Or do I want to have coverage for this diamond even when it is unset and getting it mounted?

 

[newenglandgemlab]

Hi BT,

Most insurance companies will not insure a loose stone. The jeweler setting it should insure it while it is in his/her possession. Congrats on your purchase and engagement. Cindy

 

[jaz464]

Have you asked your jeweler if he/zhe is taking responsibility for your diamond during setting? That is very important, as diamonds can be damaged while they are being set. Some jewelers will, some will not. Sometimes it takes some hunting to find one who will. If yours will not, you are taking the chance of having a chipped diamond with no one to take liability for it.

 

[denverappraiser]

Your insurance agent probably won’t need to see the final ring, just the final appraisal. Often this can be done by mail or email so the running around you describe probably isn’t required. As Cindy points out, the jeweler will be responsible for it while it’s in their care although you should definitely discuss the liability associated with possible damage during the setting process and have them carefully inspect the stone before starting any work with instructions not to proceed if they have any issues that you should be discussing with the supplier of the diamond and/or the mounting.

There is a potential problem if something goes bad where the diamond dealer, the setter and the mounting manufacturer all blame each other for causing the problem. This can mostly be solved by buying all 3 elements from the same vendor. If this can’t be arranged, buy 2 of the 3 from the same source and get as clear as statement from them as possible that they are happy with the third before they begin setting.

Supposedly Jewelers Mutual Insurance (www.jewelersmutual.com) offers an insurance policy for consumers that covers this whole situation but I’ve never seen the text of one of these policies and I’ve never seen a claim filed against one so I don’t know how well it works. They may be worth a call.

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