My OEC fell out! Insurance question :(!

[therainbowradish]

My worst fear has come true. My recent semi-bezel reset of my 2.24 OEC was knocked loose in a fall and was sent to insurance for repair evaluation. The ring was returned to me so I could send it to Adam at OWD to be repaired but silly me wanted to wear it one last time and I ran outside to bring my barking dog in to find my diamond was gone. I crawled around the backyard with my 3 and 1 year old for 2 hours but can't find it. WAHHHHHHHHH!!!!!!

Thankfully the ring was insured but here is my question: The ring was appraised by a GIA GG/Appraiser for $11,830.00. My insurance company says that their jewelry department will try to source a diamond of equal or better quality. I have the option to take that stone or accept a cash payout but the cash value will be WHOLESALE. What?????? So I am expected to replace a 2.24 carat OEC for, what, $6000? They said they can't give me a number until their jeweler sees what he can purchase of equal quality. He said that he would prorate my insurance policy to reflect the actual value of the ring once their jeweler determines what the stone is worth wholesale. Again... WHAT?

Has anyone dealt with this? Did the insurance company actually source something nice? I am so overwhelmed. I asked why the ring appraised so high and why I wouldn't be given a 'retail value' so that I could purchase a stone of equal value and their response was that, "rings are appraised high to make you feel good." Again..... WHAT?

It's been a sad day. Hoping for some kind words to help me figure out how to respond to them and be given a fair shot to source my own stone for the appraisal value.

Gold stars if you made it to the bottom of this!

 

[Lookinagain]

It is typical that insurance pays replacement cost not retail cost so if your appraisal was at retail value you will rarely if ever get that amount of money. A retail appraisal is generally inflated over what it cost to replace the stone. They are right in the sense that the retail appraisal just tends to make people feel better and also has them pay higher insurance premiums then they should because you are generally never recoup that amount. You will get paid for what it cost them or you to buy the diamond at below retail Which is why they are offering you the wholesale value if you choose a cash payout otherwise they will try to source a similar stone for you and pay whatever that ends up costing

 

[therainbowradish]

Thank you! I have emailed the appraiser asking about the inflated cost. I can't understand why they would do that if the sole purpose of an appraisal is to help in the recovery of a lost item.

Would I be better off accepting the stone they chose or taking the payout and finding one myself? I have such a huge knot in my stomach about the idea of not being able to replace it with something as nice since they will likely give me less than the purchase price (If I an understanding you correctly.)

 

[Lookinagain]

I would see what they can find first. I assume you don't have to accept the stone they offer, but make sure of that. I don't know what you paid for the stone or how old your appraisal is and until you see what they can find as a replacement stone it seems to me that taking a reduced value may not be the way to go. If what the jeweler finds costs as much as your insured amount then why take a reduced value up front. have you checked Old World Diamonds, Jewels by Grace, Love Affair Diamonds etc to see what a comparable stone would cost if you purchased through them? I would do that just to have an idea of what it would cost YOU to replace the stone. The jeweler the insurance company uses can probably purchase at a lower price than you can.

 

[therainbowradish]

Yes I contacted wonderful Erica from Love Affair Diamonds to help me. I have asked my insurance to use her as the vendor so that she can pick something nice and they can buy it from her for me. If they are not willing to work with a specific vendor then yes I am ready to provide them with comps from the vendors you mentioned to hopefully help me negotiate a reasonable payout. Thank you for your tips!! What a nightmare.

 

[armywife13]

I am so sorry that you lost your diamond! I would highly recommend contacting Jewels by Grace, I have worked with her several times and she has always been amazing to work with. Old World Diamonds and Good Old Gold are also very good options. Best of luck!!!

 

[therainbowradish]

Thanks Armywife13! Has she done insurance replacement for you? Of course I drool over her Instagram!!! My diamond was actually from Old World Diamonds to begin with. I am hoping they will work with Erica. She has been really marvelous to me

 

[Resonance.Of.Life]

Grace has done an insurance replacement for me approximately 3 years ago.. I had lost an AVC. If you got your diamond from Old World Diamonds, why don't you see what Adam has in stock and ask if your insurance company will work with him?

 

[hearts-arrows_girl]

Doesn't anybody do "cash out". I mean, if I am being charged to insure a $10,000 ring, then when something happens, I only get $5,000 credit to replace my ring, I feel kind of jipped. I use the actual sales receipt to show my rings value, so there is NO inflation. How the heck do we consumers get on the same page as the insurance companies? I have 2 signed Tiffany bands, and I would be mad if they replaced them with something from Zales or worse yet, kohls! Please let me know if someone still does "actual value cash out!"

 

[therainbowradish]

Grace has done an insurance replacement for me approximately 3 years ago.. I had lost an AVC. If you got your diamond from Old World Diamonds, why don't you see what Adam has in stock and ask if your insurance company will work with him?

Would you be willing to share more details on how that process worked? Did you specify to your company that you wanted Grace to be the vendor or did you give them a few names of antique dealers? My insurance company (USAA) said their in-house gemologist would contact their own diamond suppliers to buy at wholesale but they don't have a good understanding of antique diamonds so I am nervous about what they will come up with. As you all well know, not all antique cuts are created equal regardless of similar stats.

Did you have any input on what Grace found.... like did she show you a few and you chose what to have it replaced with? Was it then sent to the insurance company or directly to you? I guess I just wonder if I will have any say.

I contacted Erica because she has a really clear understanding of what I am looking for in a diamond and I enjoy chatting with her. Sometimes I get twitchy with how long it takes OWD to respond to my emails and calls and this matter is a bit time sensitive.

Thanks for all the help!

 

[MrsWhitney]

My worst fear has come true. My recent semi-bezel reset of my 2.24 OEC was knocked loose in a fall and was sent to insurance for repair evaluation. The ring was returned to me so I could send it to Adam at OWD to be repaired but silly me wanted to wear it one last time and I ran outside to bring my barking dog in to find my diamond was gone. I crawled around the backyard with my 3 and 1 year old for 2 hours but can't find it. WAHHHHHHHHH!!!!!!

Thankfully the ring was insured but here is my question: The ring was appraised by a GIA GG/Appraiser for $11,830.00. My insurance company says that their jewelry department will try to source a diamond of equal or better quality. I have the option to take that stone or accept a cash payout but the cash value will be WHOLESALE. What?????? So I am expected to replace a 2.24 carat OEC for, what, $6000? They said they can't give me a number until their jeweler sees what he can purchase of equal quality. He said that he would prorate my insurance policy to reflect the actual value of the ring once their jeweler determines what the stone is worth wholesale. Again... WHAT?

Has anyone dealt with this? Did the insurance company actually source something nice? I am so overwhelmed. I asked why the ring appraised so high and why I wouldn't be given a 'retail value' so that I could purchase a stone of equal value and their response was that, "rings are appraised high to make you feel good." Again..... WHAT?

It's been a sad day. Hoping for some kind words to help me figure out how to respond to them and be given a fair shot to source my own stone for the appraisal value.

Gold stars if you made it to the bottom of this!

You may want to read my two threads; I had a major insurance issue last month...

 

[therainbowradish]

Good heavens MrsWhitney! What a crazy ordeal that was. I hope your health is improving! USAA so far has been really wonderful to deal with so far (as is the norm, they really do a good job with us military folks and we love them for that). It makes sense that they are acting similarly to other insurance companies, I just didn't realize the wholesale thing and was surprised. I am awaiting whether they will work with a vendor of my choosing. The adjuster said they only worked with a certain list but would check. I am prepared to be told no but am hoping to hear from ROL on how she got Grace to replace her ring.

 

[Lookinagain]

Ask your insurance company what vendors they use that "specialize" in antique diamonds. I wouldn't be surprised if they don't have any jeweler who does. If they don't then I would use that as an argument that they need to let you at least suggest vendors who do and that you be allowed to work with one of them.

 

[Bonfire]

You're getting some good advice here. Sorry about your stone, but if I were you I would keep looking for your lost stone while you are working out the other details. It could turn up. My MIL lost her diamond while she was gardening. ( silly woman NEVER took off her rings). She didn't give up the quest however and she found her stone in her rose garden under some mulch.
Good luck on a happy outcome

 

[Lookinagain]

You're getting some good advice here. Sorry about your stone, but if I were you I would keep looking for your lost stone while you are working out the other details. It could turn up. My MIL lost her diamond while she was gardening. ( silly woman NEVER took off her rings). She didn't give up the quest however and she found her stone in her rose garden under some mulch.
Good luck on a happy outcome

And for goodness sake, don't mow the grass!

 

[MrsWhitney]

Good heavens MrsWhitney! What a crazy ordeal that was. I hope your health is improving! USAA so far has been really wonderful to deal with so far (as is the norm, they really do a good job with us military folks and we love them for that). It makes sense that they are acting similarly to other insurance companies, I just didn't realize the wholesale thing and was surprised. I am awaiting whether they will work with a vendor of my choosing. The adjuster said they only worked with a certain list but would check. I am prepared to be told no but am hoping to hear from ROL on how she got Grace to replace her ring.

I am so glad you have USAA....yes, no one wants to be in this situation- even with excellent insurance, it is draining----and the wholesale issue seems to creep in....and their "lists". But I am praying for you!!!!!!!!! I am sure it will work out, just may take a while...and I did not have a long time...since I was starting treatment and moving...

 

[ericad]

Grace has done an insurance replacement for me approximately 3 years ago.. I had lost an AVC. If you got your diamond from Old World Diamonds, why don't you see what Adam has in stock and ask if your insurance company will work with him?

Actually ROL, that was me, remember? I still go back and reference that project when I do insurance replacements - because you upgraded stones, it was more complex than most so I saved all the emails to look back at the process, lol. But no worries - people are always mixing Grace and I up!

 

[therainbowradish]

Excellent advice about asking who they work with that specializes in old cuts. I'm hoping they say that they don't have one so I can push them to work with you, Erica. I need your eagle eyes in my corner!!!!!!

We have been looking for it non stop to no avail. I will continue to look until the day we move to a new base. Seems like a sparkly thing in the grass shouldn't be that hard to find........ha!

 

[MissGotRocks]

Just a thought - take a flashlight out at night and look in the grass. It would be wonderful to see something flashing in the darkness.

Good luck - hope you find your stone or in the alternative, a great replacement.

 

[diamondseeker2006]

The amount you paid is what I consider actual value. So unless you paid the amount of your appraisal ($11k+), then it is easy to understand the insurance company's point. An inflated value on results in inflated insurance premiums, and that is why I always recommend telling the appraiser what you paid and that you do not want an inflated appraisal. Obviously there is a difference if the ring was purchased second hand as an incredible deal or inherited, etc. But when a ring is purchased retail, I insure for no more than the price I paid.

I hope they allow you to work with Erica since she has experience doing this. It sounds like you have a good rapport with her. Good luck to you!

One other bit of advice...I'd never recommend making a small claim like a loose stone or repair issue. The insurance is for a major loss that one would have difficulty covering. Small claims and then a big claim may raise your rates or even cause the insurance company to drop you. Just for future reference.

 

[partgypsy]

Just a thought - take a flashlight out at night and look in the grass. It would be wonderful to see something flashing in the darkness.

Good luck - hope you find your stone or in the alternative, a great replacement.

I ditto this! Especially if you have a kid; they seem to have more eagle eyes about these sort of things. Look both inside and outside with the flashlight trick.

 

[wildcat03]

Just a thought - take a flashlight out at night and look in the grass. It would be wonderful to see something flashing in the darkness.

Good luck - hope you find your stone or in the alternative, a great replacement.

I ditto this! Especially if you have a kid; they seem to have more eagle eyes about these sort of things. Look both inside and outside with the flashlight trick.

Haha. My grandmother used to always ask me to find lost pins/bobby pins/whatever. She'd always say, "You're SO GOOD at findings things!" It may have become a self-fulfilling prophecy

 

[therainbowradish]

Haha oh yes my 3 and 1 year old have been crawling around the yard on a treasure hunt!

 

[lambskin]

Try looking for at night with a few flashlights. The sparkle may catch the lightbeam. Don't tell your neighbors what you are doing or they may want to join the treasure hunt without you.

 

[therainbowradish]

Lolol!!!!! So true, I may wake up to neighbors in my yard hunting for my diamond.

 

[jerichosmom]

If your diamond had fluorescence, you can use a blacklight at night to try and locate it.

 

[therainbowradish]

Sadly it didn't! I wish it did! That is a super smart idea

 

[rocks]

We are in the process of settling a claim with usaa for my husband's breitling chronograph. Long story short...it was stolen by tsa. The watch was not scheduled, but is covered under our umbrella. I have other individually scheduled high value items, and we also insure a luxury car. We live in one of those pesky zip codes and also have a beach house (another pesky zip code). Everything lines up. The thing about usaa is that if the adjuster realizes that he or she is handling a claim that is outside their comfort zone, but otherwise looks right, you need to help them. They are extraordinarily fair and prompt. It isn't an adversarial situation.

Good luck!

 

[therainbowradish]

We are in the process of settling a claim with usaa for my husband's breitling chronograph. Long story short...it was stolen by tsa. The watch was not scheduled, but is covered under our umbrella. I have other individually scheduled high value items, and we also insure a luxury car. We live in one of those pesky zip codes and also have a beach house (another pesky zip code). Everything lines up. The thing about usaa is that if the adjuster realizes that he or she is handling a claim that is outside their comfort zone, but otherwise looks right, you need to help them. They are extraordinarily fair and prompt. It isn't an adversarial situation.

Good luck!

Oh my! TSA? How sad. I bet that happens a lot. I have a Tag Heuer watch with diamonds on it that I wonder if I should insure on its own policy instead of umbrella. I have the paperwork and receipt so I figure that is good enough?

I asked yesterday if they could tell me which antique diamond specialists are on their list of vendors, assuming there are none, but the girl said she didn't know and that their gem lab does all the legwork. I am hoping that if they don't produce something nice that I can press them into using my vendor or at least giving them a few names and letting them shop around. I really do want to help them because my adjuster had no idea what an OEC was.

 

[diamondseeker2006]

I'd use the term antique diamond and it cannot be replaced at an regular jeweler. It can only be replaced through a jeweler who specializes in antique diamonds. So they are going to need to work through Erica or either do a cash payout. Just don't expect more than you paid. If you can produce the receipts for what you paid, then you have a better chance of getting them to increase their cash payout. I don't know how long you have had the ring, but prices have been pretty stable the last 3-4 years so you don't have to worry too much about price increases if you haven't had it but a couple of years.