Replacement Policy for Custom Settings

[jstarfireb]

I''m trying to decide how to insure my engagement ring, and it seems that most of the companies offer only "like kind and quality" replacement policies. The exception is Chubb, which is probably too expensive for me right now, and also may not insure my ring since its appraised value is under $10000 ($8865 to be exact).

Anyway, I have a custom setting from Whiteflash, and I was wondering if that exact setting would be replaced if I had to use my insurance. I know that most companies will go to the same vendor you got the ring from, but my understanding of how these things work ends there. I don''t think I''d be satisfied with any old princess solitaire as a replacement...I want the one I put the time and effort into designing in the first place.

Specifically, the companies I''m looking at are Jewelers Mutual and Touchstone (the GemShield replacement policy). Touchstone is advertised on the Whiteflash website...not sure if that matters, but it leads me to believe that Touchstone and Whiteflash have a good working relationship. Any of you have experience with getting a ring replaced through these companies? Would it help to contact Whiteflash directly and ask what they''ve done in these situations?

 

[denverappraiser]

The rule of ‘like kind and quality’ is the key, both for you and for the insurer. The description in the appraisal you submit to the insurance company is what will be used to define this. For designer items, the designer is absolutely a portion of the value and it should be included in the replacement if the need should ever arise. If it was important to your shopping, it should be mentioned in the appraisal so that it becomes important in the replacement. Knockoff Whiteflash is no more a valid replacement than knockoff Tiffany unless you approve it but if you don’t tell them, they don’t have any way to know. This is part of the reason that they are asking YOU to provide the appraisal instead of hiring their own experts to do it. People are often confused at how an insurance appraisal is used and are happy to submit anything the company will accept. This is usually a mistake, and often a serious one. It’s not the insurance company that should be picky about the appraisal, it’s YOU.

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

 

[jstarfireb]

Hmmm...I got my appraisal (attached) through Whiteflash, and it doesn''t say too much about the specifics. Maybe the insurance company will let me submit the WF invoice and some pictures with it. On the Touchstone online application, there''s room to upload 5 files, and they encourage pictures. Perhaps that will be the best way to get the info to them.

I contacted Bob at WF to see what they''ve done in the past with custom setting replacements, and I''ll post what I hear.

There''s actually an error on my appraisal that I''m in the process of correcting (the surprise diamonds are princess, not RB). Obviously I won''t be submitting anything until this is done!

 

[denverappraiser]

In my humble and completely unbiased opinion, I think you should get a real appraisal. Read that description and ask yourself if you are likely to be satisfied with the cheapest thing the company can buy that will meet the specs that you are providing them. If the answer is no, consider getting a better appraisal.

By all means, uploading files is the way to deliver the information.

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

 

[jstarfireb]

That was a real appraisal, actually! WF gave us the option to have the ring independently appraised for an extra $75. I cropped the file to get rid of my fiance''s name and address, so the letterhead isn''t on there, but it''s from Lastovica Jewelry Appraisal Services in Houston, TX. So it sounds like my options are (a) spend another $100+ to get it reappraised and tell them to add more specific info, or (b) submit a ton of pictures, descriptions, etc. with my appraisal and hope the insurance company doesn''t just trash them.

If I go with the GemShield policy, they use the jeweler who you purchased the ring from to make the replacement. If I go with Jewelers Mutual, they let you pick the jeweler. Either way, I''d go back to WF. I guess what I''m really wondering is if I can trust WF to reproduce the same setting given that GemShield just tells them "this crazy lady got her ring stolen, so go make her a new one." Would they include me in the discussions about the replacement, or does the insurance company usually just go straight to the jeweler?

 

[denverappraiser]

Call the appraiser and express your concerns. They may be able to do better and I wouldn’t expect them to have an additional fee. Both companies will normally go straight to the jeweler for replacement if they can. Notice, by the way, that your appraisal does not mention the jeweler very directly. With a bit of work they can figure it out from the "a cut above" branding for at least the diamond component but it really should be spelled out on the mounting if you expect it to be part of the replacement requirements. Is this valuation in line with your purchase price?

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

 

[RockDoc]

Imagine that you are an insurance adjuster.


The insured just filed a claim for a loss, and you have to replace the item based on the information contained in the report.


Could you replace it "exactly" based on the information in the appraisal? Just as a start there really isn''t any cut grade information described.

RE: Independent appraisal. This is something ALL appraisals need to be. If the appraiser was hired by the seller, or paid by the seller, would a reasonable person deem it is really independent?

Other questions in the above document:

Since the gradings are reported via the AGS report, did the appraiser in fact do ANY testing or verification of the AGS data?



A seller or a sellers "agent" should not write a document titled "APPRAISAL". They can issue a " Cost to replace the item at my store", but an appraisal requires market research, and comparables AND A SIGNED statement by the appraiser that he is "independent".

As Neil wrote YOU''RE the only to be concerned with the accuracy, and professional methodology in the report.

Commonly insurance companies only look at the value so they can set the insurance amount, and ignore what else is in the report. They only scrutinize it once a claim is made. When there is a claim THAT is when the content really matters.

Rockdoc

 

[denverappraiser]

Did Whiteflash hire this appraiser or did you?

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

 

[JohnQuixote]

Our letter of verification is not intended as a substitute for a full appraisal (information here).Jstarfireb requested further information, specifically for the purpose of proper insurance coverage.He was on a tight timeline so we offered him a choice; the name of the PS appraiser closest to him, or an upgraded service from Lastovica Jewelry Appraisal Services, convenient to us.He chose the latter.

Selecting an appraiser is always up to the client.We are currently working on a project to impartially inform clients of the range of services and options that exist, without specific recommendation.

 

[jstarfireb]

Thanks very much for all your input. This has been very educational for me. So it sounds like the best option now would be to call the appraiser and request that additional info be added for insurance purposes. I do have to get the error about the surprise diamonds corrected anyway. Still waiting to hear from Bob from WF about what they normally do for custom settings that need to be replaced, but I agree that it''s important to cover all my bases.

 

[Modified Brilliant]

Date: 6/2/2007 8:34:03 PM
Author: jstarfireb
Hmmm...I got my appraisal (attached) through Whiteflash, and it doesn''t say too much about the specifics. Maybe the insurance company will let me submit the WF invoice and some pictures with it. On the Touchstone online application, there''s room to upload 5 files, and they encourage pictures. Perhaps that will be the best way to get the info to them.

I contacted Bob at WF to see what they''ve done in the past with custom setting replacements, and I''ll post what I hear.

There''s actually an error on my appraisal that I''m in the process of correcting (the surprise diamonds are princess, not RB). Obviously I won''t be submitting anything until this is done!

If the appraisal references the AGS document...why is the word "approximately" used for the diamond measurements?
The diamond was graded and measured "loose" by AGSL.

www.metrojewelryappraisers.com

 

[FireGoddess]

I am insured through Travelers, specifically because they cash out instead of trying to replace ''like and kind.''