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another appraisal question.

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okaynow

Rough_Rock
Joined
Jan 15, 2003
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31
Do you have to get an appraisal in order to insure it? Can''t you just use the certificate and the receipt of what you paid for it?

I know I can trust who I''m gonna buy it from.

Last time I had a diamond appraised, I had to sit there and take the abuse from the appraiser who was a cut freak perfectionist. "Its not an E its an F, its not an SI1 its an SI2. This diamond is nowhere near ideal. Look I can see an inclusion. You should return it for something smaller but better cut."

After all of this I still thought the stone was nice. Never mind that I got it for a great deal and he even admitted that it was worth more than double what I paid for it. I don''t think I want to go through that experience again when I know I''m going to keep this one no matter what. Last thing I need is a diamond expert making me feel insecure about my purchase and a like cheapo.

So do I really have to get it appraised before I can insure it?

Thanks
 

newenglandgemlab

Shiny_Rock
Joined
Jan 16, 2003
Messages
316
Hi,

If you feel totally comfortable with the stone and who you are purchasing it from, then an appraisal for insurance purposes may not be necessary. A couple of thoughts: insist that the grading and specifications are on the saleslip and that you are getting a
GIA or an AGS report. The dealer should be able to supply you with a 'Document of Purchase' stating the selling price and this may be all your insurance company may require. There are appraisers and there are appraisers. The exacting documentation required to make sure you are properly covered is where the best appraisers shine. Down the road, as pricing changes, you may have to have it done, but with all your paperwork this will be an easy job.


Too bad you had an uncomfortable experience, they aren't all like that!
Cindy
 

Giangi

Ideal_Rock
Joined
Jan 23, 2003
Messages
2,530
Ditto on what Cindy said!!!
 

RockDoc

Ideal_Rock
Joined
Aug 15, 2000
Messages
2,509
Thorough is one thing..... abuse is another.

If the appraiser/gemlogist was exacting in his analysis and took the time to be thorough, then he shouldn't be criticized.

Unfortunately, the movies give consumers the impression that you look with a loupe and within seconds, issue an opinion. For mall type stones that are of questionable quality, yes this is pretty easy, but for the super-precise - high color and clarity type stones, it takes a lot more time and some very advanced equipment and experience to make conclusive conclusions.

DO YOU NEED AN APPRAISAL?

In some cases your receipt will be accepted, but the deciding factor is the type of insurance you're buying and how that company settles their claims. If the valaution doesn't parallel the settlement - then the appraisal may be for an incorrect market level value, which just results in you paying a lot more for premiums than you should be. Add this up over years of insuring and it does become a rather large amount, especially if you have more than just a couple of items insured.

Some companies require comprehensive reports - others don't. Having a detailed report that spells out all the considerations and grading of the diamond is far better than having a claim and the necessary information isn't there for you to "defend" the claim.

We have one like this now..... Consumer insured a diamond and over a ten year span it got two chips in it. It was originally appraised as being a VS stone, but the appraiser never plotted it. Now they are saying it was always an SI stone and denying the claim. The stone also has a severe amount of strain and is high risk for repairing the chips. So sometimes less information can hurt you, which is why a comprehensive report can change a claim result, and save you a lot in the event of damage or partial loss.

Hope this helps.

Rockdoc
 

RockDoc

Ideal_Rock
Joined
Aug 15, 2000
Messages
2,509
Another fact to consider.....

Many insurance companies will accept a Hershey bar wrapper to insure an item of jewelry.

But when it comes time to pay a claim, the accuracy and thoroughness of the report is what governs what they may pay, how they pay it, and IF they will pay it. This is particularly true for the very commonly sold Replacement type insurance coverage.

So in the end,the more comprehensive the report, the less troublesome claim settlement can be.


Here are some quick questions that you might want to check the report to see if these are included.

1. Is the diamond plotted?
2. Is the manufacturer and model number of the mounting defined?
3. Did the appraiser narratively explain how the value conclusion was made?
4. Was the valuation made to conicide with the method by which the claim would be settled?
5. Does the appraiser have gemological AS WELL as Valuation credentials?
6. Is the appraiser's resume/CV included in the report?


Rockdoc
 

okaynow

Rough_Rock
Joined
Jan 15, 2003
Messages
31
wow, a lot of great information RockDoc.

When people say "plotted", isn't the plotting on the GIA or AGS report good enough? Why wouldn't the insurance companies take the original Cert as valid evidence of diamond value?

Thanks
 

newenglandgemlab

Shiny_Rock
Joined
Jan 16, 2003
Messages
316
Hi,

If the stone is indeed over ten years old, it probably didn't have any documentation to start. Just one of those 'very loose' documentation of purchase type of report. Remember, the internet has brought all this info to the public. The more educated consumer will get the best pricing. Ten years ago the majority of the stones were sold on the retail level without reports. Nice to see this change!

Cindy
 

RockDoc

Ideal_Rock
Joined
Aug 15, 2000
Messages
2,509
----------------
On 2/5/2003 2:22:29 PM okaynow wrote:

wow, a lot of great information RockDoc.

When people say "plotted", isn't the plotting on the GIA or AGS report good enough? Why wouldn't the insurance companies take the original Cert as valid evidence of diamond value?

Thanks
----------------

It depends.... Plots from the major labs may or may not be accurate. Some reports only plot "grade setting"inclusions. I had a stone where GIA didn't plot a small feather on the girdle. In addition GIA and AGS plot many feathers on the crown with a single line - when the inclusion actually appears much larger or even has more than one "branch" when viewed through the side of the stone or the pavilion. So.... the drawing of the inclusion may actually appear different than the inclusion looks.

It takes a while to accurately draw inclusions... In order to avoid confusion with this issue, I photograph the inclusions in the stone. Far better evidence in supporting a claim denial when there is an issue between "then
and now.

Guess that's why my reports are lengthy...
 
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