Another Annoying Insurance ?

[Eva17]

OK, I have a loose stone. It has a chipped girdle. I want to have it recut and then reset. Tried to move forward, but along the way found out I have no protection against damage. So, I try to find insurance for the stone which no one will insure....

JM just got back to me to say they will insure a loose stone, ONLY if the proposed setting is included in the coverage with appraisal.


I don''t have a setting. I want to have the stone recut.....


So, is my only option to buy a cheap setting, appraise the ring as a "whole item", then insure it, then have it recut while insured??????


If I buy the new setting from someone, and have then send it to a cutter, that still won''t give me any protection? What is a person to do? Help!

 

[denverappraiser]

Date: 11/30/2006 6:35:08 PM
Author:Eva17

So, is my only option to buy a cheap setting, appraise the ring as a ''whole item'', then insure it, then have it recut while insured??????

I''m a tad surprised that they would agree to cover this situation but if their underwriters have made this decision I recommend you cheerfully accept their offer. How does it work if the yield from the cutter is less than you originally expected?

It''s necessary to have a PLAN that involves setting it into a completed item. This is not quite the same as what you described. In the unlikely event of a problem at the cutter, this plan would surely change so I see no particular reason to actually purchase the setting first, only that you plan to purchase one.

What do you have in mind doing with your newly recut stone when you''re done?

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

 

[Eva17]

They did not tell me to do that, I am asking, because there response was that the stone should be set or a setting purchased, appraised and they will cover the setting of a loose stone that way. And then the stone will be insured.....

My dilema is, I want to have the stone recut, and I don''t know what the exact size will be, just a ballpark range, so I wanted to wait till it was recut before committing to a setting. I am not comfortable sending out the stone for a recut without any type of insurance.

In the end, I would like to add side stones and reset the diamond. I had the stone taken out of the setting to have it evaluated for the recut. Should I put it back in the setting and insure it?

Would a policy cover me, if I sent the insured stone out for a recut? I am waiting for JM to get back to me on that question.

I wish there was a cutter that had their own insurance, and you had to pay a little more for the cut, but had peace of mind.

Thanks Neil!

 

[denverappraiser]

Date: 11/30/2006 8:16:32 PM
Author: Eva17
... and you had to pay a little more for the cut, ...

Ahh, that would be the rub wouldn''t it? Their idea of a little might be your idea of a lot.

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

 

[Eva17]

True....

If they toldl me i''ts 350 for the recut and 100. for the protection. I''m in. It could potentially save me thousands...

If they charge the hundred for customer recuts, perhaps it would cover a policy.

I know, I''m dreamin

 

[denverappraiser]

JM typically charges 1-2% of the declared value of the item per year. This puts the premium on a $10,000 diamond right in you sweet spot. If you don’t mind my asking, what are you thinking your stone is worth?

As I mentioned above, I’m a bit surprised that they would offer this coverage in the first place and I’m really curious both about what conditions would be required to make a claim and what would constitute a valid replacement.

There is no insurance that a cutter can buy that covers craftsmanship, damage that may happen on the wheel or stones that don''t meet the original expectations. They would need to self-insure in order to offer you guarantees on these issues. I would fully expect their fees for this to be quite a bit more than JM customarilly charges on their personal jewelry insurance.

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

 

[Eva17]

When we purchased it years ago it was about 17K. It is just over 2C. Now with the chip, I am not sure what it would be worth.

The recut would probably take it below the 2C. If I went with ideal %, it could end up around 1.75C. Which I don''t want to do. I would like to clean it up with the least loss possible.....

At which point the insurance policy would no longer match the replacement value of the diamond. (I am assuming)


I really want to redo this stone and reset it, but there seems to be no way to proctect myself..

 

[denverappraiser]

Date: 12/1/2006 8:40:39 AM
Author: Eva17

... but there seems to be no way to proctect myself..

Eva,

Didn''t JM make you an offer?

I presume that the estimate of 1.75cts ideal came from discussing the details with a cutter. Based on that and the previously known clarity and color, you''ve got a reasonable basis for what to expect and an appraiser should be able to prepare the paperwork that JM requires to provide the protection you''re seeking. What am I missing?

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

 

[sfritz]

The information you received when you called Jewelers Mutual’s home office is correct for a loose stone that is in the process of being mounted. We would NOT insure the recutting of this stone, however. After the stone is recut, you can submit the revised stone appraisal/insurance evaluation along with the information about the mounting and we can proceed with the application process to insure your stone and setting during the setting process and subsequent 12 months.

Sue Fritz
Jewelers Mutual

 

[Eva17]

Ok, thanks for the information Sue.


I guess there is no "protection" out there for a recut!!

 

[RockDoc]

Hi Eva

Didn''t you get insurance after you bought it?

If you did, and you have a policy that covers damage, and it wasn''t damaged previously, then it should be able to be covered.

I assume however, that because it wasn''t set, that you weren''t able to get insurance coverage when you bought it.

Do you know why it chipped? Has someone analyzed the stone for you? Is there any strain in it, or more specifically associated with the chip?

Rockdoc

 

[Eva17]

Hi Rocdoc, the stone is an old stone of mine that no longer had insurance, and one day while wearing it, my had got stuck in a door and it nicked the girdle.

I did have it evaluated, and was not told that there was any strain resulting from the chip.

But I didn''t want to go forward and sign any job waivers, which would not give me any protection should the rare chance of breakage occur during the recut.

It is a shallow stone with a large table and thin part to the girdle (hence the chip), so I figured let''s clean this thing up while we get rid of the chip.

But at this point, I guess I will just reset it, try to hide the chip (perhaps double prong) and live with it''s shallowness.....