when insurance co choses to replace the stone...

[Christina...]

OK, I posted this question in another thread but thought that I might get more response here.

I have a fancy cut diamond (step cut) and so therefore my certs and appraisals don't have a cut grade. Some I'm wondering what would happen if I lost or damaged my stone and my insurance company decided to replace the diamond? Would they simply pick any stone with the same color and clarity grade? Would they consider the dimensions or w/l ratio of the stone?

I spent months researching and educating myself about emerald and asscher cuts, and hours and hours shopping and travelling to different jewelers to compare color and cut, I hate to think that if something horrible and unspeakable were to happen that I could end up with any old stone. I mean, I don't have to tell any of you that even stones with very very similar grading and cut can perform very differently, and I spent alot of time looking for a step cut that had more fire than was typical, and.....and........

I guess the best advice would just to be very diligent and careful and not take unnecessary risks while wearing it, but well....life happens right?? Maybe...hopefully' my take on how the insurance company works is incorrect, and maybe one of you will tell me about a policy that only pays out in the event of loss and such, but I guess I'd just like to hear your thoughts and experiences. Thanks!

 

[yssie]

First step - get a thorough appraisal that *does* list all of that information, including cut!

What the insurer does will depend on what company you go with, the specifics of your policy.. I know w/ JM they will replace with like kind and quality based on the value listed on the appraisal - from my understanding even if you turn in IS photos, Sarin scans - unless that info and those pics are on the appraisal they aren't obligated to consider them. And I get the feeling JM is among the better (read: less of a PITA come claim-time) vendors...

Gypsy's recent thread on insurance & replacement goes into your questions a bit more I think - [URL='https://www.pricescope.com/community/threads/experts-especially-appraisers-can-you-please-chime-in.162422/']https://www.pricescope.com/community/threads/experts-especially-appraisers-can-you-please-chime-in.162422/[/URL]

 

[Christina...]

You're so helpful Yssie! I've sorta adopted you as my mentor around here.

I just read Gypsys thread and that raises another question. I currently have my ring insured with my homeowners under a seperate rider for personal property. I've only started looking around at JM, Chubb, etc and their rates do seem MUCH more reasonable. My policy now is 2.75 per 100. I spoke to them about diamond prices rising at a significant rate and that the appraisal I had just in March is already out dated, and was told that I would be able to submit a new appraisal once every year. At the rate of the increases I'm wondering when best to submit a new appraisal. I'm sure anyones guess is as good as anothers, but do you have any thoughts on this? I'm thinking that I'm probably ok for a few months and then when I see (if) I see prices starting to level off, then getting and submitting a new appraisal....

Also I've heard others mention that they do cost plus 30% or 40%....this wasn't an option for me and my current policy, but is this practice common with insurers dealing specifically with fine jewelery?

ahhh I feel so green....

 

[yssie]

Aww thank you! I'm finishing up at my current job and my new gig doesn't start 'til Sept, and w/ DH ignoring me in favour of preparing for his PhD defense in a couple of weeks I have plenty of guilt-free time to spend on here at the moment

Usually when you have your appraisal done you can tell him/her that you are looking specifically for an insurance replacement value, and he/she will inflate accordingly. At least, that's how it's always worked for me. With the way prices are rising, though, I'm glad my appraisal last year was overly over-inflated (half again) - at this point it's almost reasonable replacement cost!

I plan to get a full appraise every couple of years - I know that thorough appraisals are pricey, but I figure if I overpay in premiums to account for inflation for four years the appraisal value must be so high that I'm likely to at least break even on a two-year re-appraisal cycle, so the end effect is the same, and frankly if I'm going to pay someone I'd rather the money go to a trusted appraiser who can inspect the current condition of my ring than to Jeweler's Mutual!

 

[Christina...]

I'm off until September as well, so if I'm not at the beach with my little guy then I'm here doing my homework...well at least thats what I tell my DH to be.

Thanks for the information. When I had my current appraisal done, I asked for an honest interpretation and fair market value for the stone and the setting. I was more interested in determining that what I purchased was indeed what I recieved. So this is helpful information, thank you, I'll just go back and explain exactly what my concerns are and the purpose of this appraisal and then submit it when I choose a new insurer.