When to insure?

[rmkwebdesign]

If purchasing the e-diamond and setting from two different vendors, does one does one insure the diamond first and then get it set, or wait to insure until after the diamond is set?

 

[diamondseeker2006]

Best to insure before having it leave the original vendor, if possible.

 

[rmkwebdesign]

Interesting...I guessed I miffed that one up already!

I''d read a lot about insuring, but never anything about before shipment. So, I''m assuming then that the diamond should be insured before setting?

 

[lyra]

Definitely insure the diamond before setting if possible. I had to get mine appraised before I could get insurance, but I''m in Canada, and maybe the rules are slightly different in that regard.

 

[BigDiamonds]

Yes, definitely before setting if possible. As someone else mentioned though, it can be difficult because most insurers don''t like to cover stone before setting (much higher rate of loss/damage.) I wouldn''t stress too hard about it though, because if you''re having it set somewhere reputable it should be covered by their insurance while it''s with them.

 

[denverappraiser]

Insurance is about passing risks along to your insurance company in exchange for a premium. This gets discussed quite a bit here and a search for ‘insurance’ will provide you with lots of reading material.

Most insurance companies will only bind a policy on a piece of jewelry, not a component. This means that unset diamonds can be a problem. Most jewelers have insurance that covers things like loss and theft while it’s in their possession so this leaves two areas of vulnerability. First is between the time when your stone arrives and when you turn it over to the jeweler to be set. This can include the time while you show it to all of your friends, take it to your appraiser, compare it to stones in other stores or whatever it is that you do with it. The other is damage caused during the setting process where the setter specifically disavows responsibility when you give it to them (this risk is low but it’s common for setters to refuse to accept the risk on stones that they didn’t sell).

Jewelers Mutual offers a policy on pieces that do not yet exist by sending them an appraisal of the diamond, the mounting, your intentions to assemble them and, of course, paying your premium. This can be done as soon as you have an ‘insurable interest’ in the piece, which means as soon as you’ve committed to buy it. You can get one of these policies before the diamond dealer even ships the stone so both of the above will be theoretically covered. I say ‘theoretically’ because although they are repeatedly on record describing this program and I’ve personally seen claims paid based on it, this is NOT what their website and advertising materials say and often their own sales people are unfamiliar with it. The big downside of this is if you decide not to buy the stone and return it, you’ve purchased a 1 year policy on a stone that you only have in your possession for a few days. Depending on your confidence that you’ve got the right one, this might turn out to be a bit of a waste.

I’m told that Gemshield has a similar program although I have less experience with it and they too don’t discuss it in their advertising. I know of no other insurer who offers this sort of coverage.

Here’s where you can go for more information about these two policies.
www.jewelersmutual.com
www.touchstoneinsurance.com

A fair number of people solve this problem by simply self-insuring for the first risk (loss while you inspect it and decide to buy or return) and choosing a jeweler for setting who covers the second (breakage during setting). For those who can’t arrange this or simply prefer not to, the JM program is a wonderful solution for what strikes me as a very reasonable price.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Char D]

Thank you, Neil, for the kind words. As an FYI, we are in the process of upgrading our Web site and expect to launch it in October. It will have the updated information regarding our policy on covering loose stones in the process of being set into jewelry.

Char DeCoster
Jewelers Mutual
www.jewelersmutual.com

 

[Regular Guy]

Date: 9/7/2007 1:37:13 PM
Author: Char
Thank you, Neil, for the kind words. As an FYI, we are in the process of upgrading our Web site and expect to launch it in October. It will have the updated information regarding our policy on covering loose stones in the process of being set into jewelry.

Char DeCoster
Jewelers Mutual
www.jewelersmutual.com

1) Denver...as usual...a great job summarizing what I''ve understood to be the case
2) I recommend JM on the same basis, too.
3) Where''s Sue Fritz?
4) Char, who are you?
5) I''ve got 2 bits says October will come & go without the promised text (as this was, I believe promised before)...but I''d be delighted to be wrong...and October...is, after all, one month only away!

 

[Char D]

I’ll take you up on that challenge Ira!

Sue Fritz is still with Jewelers Mutual and has taken on a new role within the company. In Sue's place, Jen Rammer and Kelley Green, licensed agents from our Personal Lines Insurance area, will correspond on technical insurance issues. My coworker Jon Hafemann, and I also will provide responses periodically.

Char DeCoster

 

[Regular Guy]

Hey Char...how''s it going.

Date: 9/10/2007 3:12:12 PM
Author: Char

I’ll take you up on that challenge Ira!

Based on Eastern Time...looks like you''ve got 1 hour to update your website.

Right now, as it always has...it shows when going to insure using your site...

"Insurance is not available on antique jewelry, loose stones, damaged items, items with missing stones or pieces, watches that do not work, or non-jewelry items."

 

[Regular Guy]

Date: 9/7/2007 4:32:44 PM
Author: Regular Guy

5) I''ve got 2 bits says October will come & go without the promised text (as this was, I believe promised before)...but I''d be delighted to be wrong...and October...is, after all, one month only away!

Bumping for Char DeCoster (or anyone) from Jeweler''s Mutual who might care to show up and comment...

 

[Char D]

Date: 11/1/2007 11:24:07 AM
Author: Regular Guy

Date: 9/7/2007 4:32:44 PM
Author: Regular Guy

5) I''ve got 2 bits says October will come & go without the promised text (as this was, I believe promised before)...but I''d be delighted to be wrong...and October...is, after all, one month only away!

Bumping for Char DeCoster (or anyone) from Jeweler''s Mutual who might care to show up and comment...

Hi Ira. Did you take a look? As of Monday, Oct. 29, Jewelers Mutual’s site not only has a new look, but this is what it says under Personal Jewelry, Learn More, FAQs:

What are the exclusions to this policy?
This policy is not available for damaged jewelry or watches, loose stones that won''t be set, antique jewelry, items missing stones or pieces, non-jewelry items, or persons living outside the United States.

We are aware that the insurance application still reads incorrectly online and we’re working on that. Because it’s a Flash application, it’s a little more tricky to alter, but it’s coming!

Thanks for checking!
Char

 

[Regular Guy]

Date: 11/1/2007 4:25:02 PM
Author: Char

Date: 11/1/2007 11:24:07 AM
Author: Regular Guy

Date: 9/7/2007 4:32:44 PM
Author: Regular Guy

5) I''ve got 2 bits says October will come & go without the promised text (as this was, I believe promised before)...but I''d be delighted to be wrong...and October...is, after all, one month only away!

Bumping for Char DeCoster (or anyone) from Jeweler''s Mutual who might care to show up and comment...

Hi Ira. Did you take a look? As of Monday, Oct. 29, Jewelers Mutual’s site not only has a new look, but this is what it says under Personal Jewelry, Learn More, FAQs:

What are the exclusions to this policy?
This policy is not available for damaged jewelry or watches, loose stones that won''t be set, antique jewelry, items missing stones or pieces, non-jewelry items, or persons living outside the United States.

We are aware that the insurance application still reads incorrectly online and we’re working on that. Because it’s a Flash application, it’s a little more tricky to alter, but it’s coming!

Thanks for checking!
Char

Now that you point it out, I do see the text you''re describing.

I would suppose the application to be more binding. It was explained during your predecessor''s tenure that the difficulty with changing requirements, as is necessary, in each of all 50 states was another problem, and you never addressed this. Are you saying this difficulty no longer pertains?

I do suppose more binding than a statement made as you apply will be a statement made on the policy itself, once it is bound. Maybe you can just post for us exactly what it is that that says.

Of course, regardless of all of this...your being willing in real time to help those who need help while their diamond is being set, regardless of what your policy says...that will help the most.

But...since reliability, consistency, and documentation of what is insured is what you want to count on...well...that''s why I''m writing.

Thanks!

 

[Char D]

Date: 11/1/2007 4:50:39 PM
Author: Regular Guy

Date: 11/1/2007 4:25:02 PM
Author: Char

Date: 11/1/2007 11:24:07 AM
Author: Regular Guy

Date: 9/7/2007 4:32:44 PM
Author: Regular Guy

5) I''ve got 2 bits says October will come & go without the promised text (as this was, I believe promised before)...but I''d be delighted to be wrong...and October...is, after all, one month only away!

Bumping for Char DeCoster (or anyone) from Jeweler''s Mutual who might care to show up and comment...

Hi Ira. Did you take a look? As of Monday, Oct. 29, Jewelers Mutual’s site not only has a new look, but this is what it says under Personal Jewelry, Learn More, FAQs:

What are the exclusions to this policy?
This policy is not available for damaged jewelry or watches, loose stones that won''t be set, antique jewelry, items missing stones or pieces, non-jewelry items, or persons living outside the United States.

We are aware that the insurance application still reads incorrectly online and we’re working on that. Because it’s a Flash application, it’s a little more tricky to alter, but it’s coming!

Thanks for checking!
Char

Now that you point it out, I do see the text you''re describing.

I would suppose the application to be more binding. It was explained during your predecessor''s tenure that the difficulty with changing requirements, as is necessary, in each of all 50 states was another problem, and you never addressed this. Are you saying this difficulty no longer pertains?

I do suppose more binding than a statement made as you apply will be a statement made on the policy itself, once it is bound. Maybe you can just post for us exactly what it is that that says.

Of course, regardless of all of this...your being willing in real time to help those who need help while their diamond is being set, regardless of what your policy says...that will help the most.

But...since reliability, consistency, and documentation of what is insured is what you want to count on...well...that''s why I''m writing.

Thanks!

Hi Ira,

Thank you for giving us the opportunity to explain further.

The description of the types of jewelry we insure on our marketing materials and within the online application is simply that, a description. An application more or less is to say, "Here is my information and a description of the items I would like you to cover. Will you accept me as an insured?"

Once an insurance company accepts the risk and issues a policy, there is binding contract for the length of time specified. We will not issue a policy for something we wouldn''t cover. If we did not agree to cover a loose stone, we would not issue a policy.

Both the application and the policy are filed with all 50 states. This process remains very labor intensive and time consuming.

I hope I''ve explained this clearly. Thanks for asking.

Char