appraisal vs cert. for insurance

[purplefrost]

What will the insurance co. use for replacement the cert or appraisal.
The reason I ask is my cert has H color but the appraisal has F color
Everything else is the same.

 

[denverappraiser]

They will use whatever documentation you gave them at the time you bound the policy. This is part of the reason that they ask you to provide an appraisal instead of doing it themselves. Where did you get the appraisal and who issued the lab report? This is a fairly significant difference. There may be other important issues as well.

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

 

[purplefrost]

The lab report is GIA. The appraisal is the freebee from the seller's gemologist.
To me the stone looks better than an H but F?? maybe G.
And it does have medium blue fluorescence
Maybe another appraisal?
But if it comes out the same which will the insurance use the GIA report number is on the appraisal?

 

[denverappraiser]

The answer is still the same, the insurance company will use the document you present them at the time you bind the policy.

The biggest reasons to get an appraisal on a new item are if you are looking for additional information that may not have been included in the sales presentation or if you are inclined to second guess something that you’ve been told. Obviously, a report from the seller isn’t going to do much for either of these situations.

One of the biggest problems with using seller supplied reports for your insurance is that they routinely report unrealistic prices. This increases your premium cost without actually increasing your coverage. The other trap is in the description. Remember the advice above; the documents that you present at the beginning will become the definition of the item in the case of a replacement. If you indeed have a diamond of F color that GIA called an H, I recommend you document this by an unrelated 3rd party and then submit their findings as your appraisal report.

In general, insurance companies will not bind a policy on a GIA report alone because it doesn’t contain a value and, for most customers, the diamond described on the report is only a component of a finished piece (like a ring). If the receipt is sufficiently descriptive, it can sometimes be used. Read it over and decide if you would be happy with a replacement based on the description given. “14k gold and diamond ring” can describe quite a few things, some of which would likely not be acceptable to you. If you submit this as an appraisal, then you are agreeing to accept this as the definition of the replacement. The insurance company will accept almost anything, it’s you that should be more selective.

I would also recommend against buying a stone as an F despite a GIA report that says H unless you have some very strong reason to believe that GIA made such a serious error. I would not make this decision based upon a sellers assurance.

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

 

[WinkHPD]

As was excellently stated above, the insurance company will go with the appraisal. It means that in this case you would get a stone with a GIA F grade.

However this whole thing leaves a "fishy" smell in the air. Why did they call it an F on the appraisal when it says H on the report? Did they sell it to you as an F or as an H? How was it marked on the tag? What was said during the sale, or did this issue only come up when you read the appraisal?

Enquiring minds want to know...

Wink

 

[denverappraiser]

Date: 3/13/2005 3:30:46 PM
Author: Wink

..... It means that in this case you would get a stone with a GIA F grade. ....

Wink

They are obligated to replace with a stone that that store will call an F. I would be quite surprised if they would use a GIA graded stone to replace in this situation unless the client agreed to accept a GIA-H.

I agree about the fish.

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

 

[purplefrost]

Wink , Denverappraiser



Laboratory: GIA
Carat Weight: 1.02
Color: H
Clarity: VS2
Shape: Marquise
Depth: 65.6%
Table: 57%
Polish: EX
Symmetry: GD
Culet: N
Girdle: TN-TK
Fluorescence: Medium
Measurements: 9.71x5.21x3.39

$3500.00

I bought the stone as an H online(one of the venders here) and I am very happy with it.
I will get a local appraisal if it's better than an H good for me, if not its still exactly what I wanted.
Thank you both for the info.