Another Insurance/Appraisal Question

[boingyman]

Hi Everyone,
I must say directly or indirectly many of you here have helped me tremendously on this site and I just want to thank you all on my e-ring hunt.
I’ve chosen my center stone and setting from BGD and will be sending my final payment next week. BGD offer an in-house appraisal for $75. Although I’ve read multiple threads on insurance and appraisals I’m still not sure what my best options are. I apologize if some of my questions are commonly asked. My appraisal concerns are mainly revolved around obtaining insurance.
I may get an independent appraisal for peace of mind shortly after I receive the ring, but that’s a different topic.
My location is in Northern California (Yes, I know this alone will cause my premium to be higher than most other areas in the country).
I’ve looked into Jewelers Mutual and there is definitely a huge difference in premium price once you break the $15,000 mark. Since the diamond I purchased was in their double diamond inventory (-8% discount) on top of their pricescope wire discount (-5%) the price is significantly lower. I also received the 2% wire discount on the setting as well. On top of that no sales tax. The price without discounts would be $16,312. If I add in CA sales tax in my area (8.75%) it equals to $17,739.
I’m not sure what number to expect from a BGD in-house appraisal. I obviously don’t want an inflated price. What are your thoughts on BGD’s in-house appraisal for insurance purposes? Or is it better off doing an independent appraisal for insurance purposes?

If I did go with Jewelers Mutual and the ring was stolen or lost. What do I need to be sure is included in terms of ring description on the policy to ensure I get at least the same quality or value replacement? I’m assuming JM uses the appraisal price and not the purchase price?

What about Chubbs? I heard they have a cash out option. Is the premium based on purchased price? Would it still be cheaper to go through JM?

Also is it a better choice to have no deductable? Or maybe $100?

Sorry for the long read, however I really would appreciate your comments and feedback.

 

[denverappraiser]

In their standard policy, JM is agreeing to replace a lost item with another of like kind and quality. This means that they’ll buy you a new ring, as opposed to writing you a check for the declared value. The usual procedure for this replacement is to allow you to choose the jeweler you choose for the replacement and they will then beat them up on the price behind the scenes. In defense of JM, they pay pretty well but they are NOT agreeing to pay your favorite jeweler whatever he wants for the replacement. As long as the cost of replacement is below your declared value on the policy (which is usually the value conclusion from the appraisal), that’s what they do. If the cost to replace is MORE than your policy limit, they’ll cash out for the policy limit. As you’ve noticed, the premium is a function of your policy limit, your address and the deductible you choose. You can also get some discounts for security measures like alarm systems and such in certain cases.

The key concept in the above is ‘like kind and quality’. It’s actually a more important element of your appraisal than the value conclusion. The description section of your appraisal is going to be used as a purchase order for the replacement and it’s terribly important in getting a proper replacement that you document everything about your stone that you want included in that purchase order. This includes branding, hearts and arrows symmetry, special details on the mounting and anything else that you counted as important when you were shopping. The value conclusion should be sufficient to replace the piece given this description. If you’re in doubt about whether the conclusion is reasonable given the circumstances, talk to your appraiser about it. They should be fully prepared to explain how they came to their conclusion and why it’s the appropriate one for your situation. 'Value' is not a gemological property and it includes elements of what an item is worth to whom, when and under what circumstances. These details matter and if your appraiser doesn't understand it (or can't explain it), find a different appraiser.