A must read..chip..chip...chip

[Skip]

It''s been some time since I have last posted. My knowledge gained on this site helped me to make an informed decision to buy a quality diamond and move forward with my life. I was engaged, happily married and living the life. That was of course until my wife showed me the crown facet on her diamond that no longer existed. I guess the saying that diamonds are a girls best friend is actually true, because she certainly has acted like she has lost a friend. Happy wife = Happy life, Chipped crown = I''m going down!

I never realized that if I was the one not wearing the diamond and it chipped, somehow it would be my fault? For all of you fellas out there who buy a diamond that your wife may accidentally chip, I have some advice for you. Do not, I repeat do not tell her when viewing her chipped diamond that it is her fault! Nothing good will come from that statement.

I would also encourage all who read this to be certain that your diamond is insured! Luckily we were insured and after a good hosing from State Farm, I can replace the stone.

I am hopefull that I will have the stone replaced shortly and be off the couch and back in bed by Christmas!


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I''ve posted several questions on this forum and received some good advice. I have finally purchased a stone and was wondering some opinions on it

Here it is http://www.whiteflash.com/diamonds/diamond_Details.aspx?itemcode=GIA-13039869#

Any input is helpful.

Thanks!

 

[flower12]

Skip, I am really sorry to hear about your wife's diamond.
I understand very well your wife's feeling that like lost best freind....
but I am so happy that you had insurance for it

so are you going to get new one? or already you have?

 

[Skip]

I have insurance from State Farm, they''re great!

State Farm asks for an appraisal for insurance purposes to insure the stone based on the appraisal dollar figure. Then after you loose the stone, chip it or otherwise they ask for you to go to "their" jewelers so they can have it appraised. They give you the option of exact replacement (which most of their jewelers can''t do) or cash you out at their replacement cost. If you are insured by them, find another carrier. I would not reccommend them to anyone.

Ask me to pay a premium on what is an inflated appraisal amount if you can''t replace the stone and then cash me out at your price. Thanks State Farm!

 

[Garry H (Cut Nut)]

I too have been where you been Skip.

Except Drena smashed her 1.5ct and broke 2 shoulder baguettes - did not take it off in an aerobic class - when throwing her arms around with a dumb bell in each hand.

I said "you dummy"

She cried and refused (well for a few weeks only) to let me replace the smashed diamond.

My life was miserable 2

 

[Lorelei]

Good thing I take my diamond off when working out - thanks Garry!

Skip, I am so sorry this happened, looks like a great new choice you have made for the new diamond!

 

[phoenixgirl]

I have State Farm as well. They served me pretty well when I burned my kitchen down the day after I moved into my new condo.

So are you saying you took the cash option? How much did they give you? I have my ring insured with them, and I''m pretty sure I personally could replace my ring for half of the appraised value, so as long as they gave me that much or pretty close, I''d be a happy camper.

 

[denverappraiser]

The first key to good insurance coverage is to provide a good description in your appraisal. It may not be too late. If you bought your first diamond from Whiteflash or other high quality jeweler, they will probably have documentation on the details and it will be helpful to get these details and forward them to the adjuster. Most of the replacement jewelers can come up with pretty good merchandise if you can come to an agreement to what constitutes ‘like kind and quality’. Anything you can provide to defend your position will help.

If your concern about the offers from the replacement jeweler revolve around cut quality, you can gain quite a lot by allowing an independent appraiser to inspect the damaged stone.


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

 

[jaz464]

I have State Farm as well and they told me not to bother insuring my diamond for an inflated appraisal value because if/when the diamond has to be replaced, they will not need to spend the extra money to find a comparable diamond. They said to insure it for the amount it would cost for me to go out and find a like diamond. Using an inflated value is just a waste of money.

 

[RockDoc]

Date: 11/20/2006 2:01:52 AM
Author: Skip
I have insurance from State Farm, they''re great!

State Farm asks for an appraisal for insurance purposes to insure the stone based on the appraisal dollar figure. Then after you loose the stone, chip it or otherwise they ask for you to go to ''their'' jewelers so they can have it appraised. They give you the option of exact replacement (which most of their jewelers can''t do) or cash you out at their replacement cost. If you are insured by them, find another carrier. I would not reccommend them to anyone.

Ask me to pay a premium on what is an inflated appraisal amount if you can''t replace the stone and then cash me out at your price. Thanks State Farm!

Sorry about your problem Skip.

Here are a few suggestions....

In some states, if the insurance company pays a settlement for less than the insured amount, they are obligated to refund that portion of the premiums that you''ve paid.

Who provided the appraisal? If the apprasier''s valuation caused you to pay unnecessary premiums, because the "wrong" value was used relevant to how YOUR insurance company would pay it''s claims, then he may have some professional liability. If you policy says the replacement of cashing out is based on what an inurance company would pay to their replacing source, then the valuation used in the appraisal should be at that market level. If this is what has happened, then if the use of RETAIL valuation was required by the insurance company, then they should refund the ''unearned'' premiums, if on the other hand, the appraiser used the wrong market to report the valuation, and you paid excessive premiums due to his negligence, then he could be held liable.

In a replacement type insurance policy scenario the completeness of the appraisal you submitted is paramount to the replacement that is offered. So if the appraisal isn''t thorough, the insurance company will replace exactly as it described in the appraisal.


It could also be that State Farm is just being unfair in the settlement offer. If so, a good independent appraiser can help to get them to "come around" with something more reasonable. Many times, the replacement company they deal with will quote a hypothetical cost of a replacement, rather than an actual one.

This is a perfect example of WHY I keep harping in here to get the stated value type policy.

Rockdoc

 

[Skip]

All of your responses are informative and apreciated. I my opinion, State Farm and other insurers practices are deceptive at best. Thanks for the info Rockdoc.