appraisal sent w/diamond, legit?

[biz_gravy]

Hey, i just purchased a diamond from DCD and it''s georgeous, and the whole experience was very pleasant. I was surprised, though, when i finally got it that it was accompanied by an appraisal. I paid like $34XX and it was appraised for something like $62XX, which is awesome. I assume this is reputable, seeing how i bought for much cheaper than i would go for regularly. Is it so much higher because the appraiser is giving a price for how much it would sell for NOT online from DCD or somewhere similar? All feedback welcome. Thanks.

 

[ame]

While I sort of trust their appraisal Id still probably get a second or third because Im insane and have to be absolutely sure.

 

[rosebud]

Hi biz_gravy,

I'm not even close to an expert, but I did just get my loose diamond appraised. The purchase price was ~$5500 and the appraiser told me that there are a number of retail prices that he'd put it up against: low retail ~$6000, mid retail ~$8000, and high retail being something very large. He quoted an internet price of approximately $5600.

In the end, he said that if he were appraising this for insurance purposes (which I'm guessing your appraisal from DCD is for), he would use the $8000 figure. His rationale was that if something should happen to the stone in the future, this would be a reasonable price at which it could be substituted with something comparable from a retail outlet. He hesitated to give the internet figure because he felt that internet prices may eventually rise if these businesses aren't able to sustain themselves on such low margins. (Just speculation on his part, not a prediction!) He didn't recommend using the high retail figure because it would needlessly increase insurance costs on the ring.

Having said all that, in my inexperienced and humble opinion, it seems that you got an appraisal on the diamond that is somewhere between mid and high retail cost. Hope that helps.

-rosebud

 

[strmrdr]

its legit in some markets it would likely sell for that but I wouldnt insure it for that much.
Purchase price + 30% should cover you for a 3-4 years just check prices every year and adjust as needed.
Paying for too much coverage is never a good thing.

 

[newenglandgemlab]

Hi,

Anyone selling a diamnond should be supplying you with a documentation of purchase of the stated grades and price it is sold at. Giving inflated appraisals along with a purchase is nothing more than a selling tool. Seems you were impressed. This is a very common practice and most consumers don't see through the smoke screen. The insurance company will never give you the inflated dollar amount in case of loss or theft unless you have a very expensive cash out policy. All they normally have to do is make you 'whole' which means they have to replace the stone. If you paid X amount for an item I would bet they can buy it just as well or even better.
Cindy

 

[Regular Guy]

Hello, my first post here.

I also last month purchased from DCD, with similar results, for which I am overall pleased. I'll intend to post a bit more about my experience soon. But, a question first:

Cindy (or any others who would like to take a stab), you said regarding insurers: "All they normally have to do is make you 'whole' which means they have to replace the stone."

Can you say any more about that process? In particular, I'm interested in two things:

1) Regarding insurer behavior, do they look at the 4 Cs on the appraisal and endeavor to substantively match them, within the constraints of the price?
2) Regarding appraiser behavior, if (1) is true, then can you comment on what customs, in your experience, are in place among appraisers regarding documenting the quality of cut, in particular. It seems like the custom is to more rigorously document, as best as possible -- weight, clarity, and color, and then do some hand waving to cut. I think I saw in a previous post of yours that you'd considered, for example, investing in a sarin machine, but decided it appropriate to leave the documenting of this to the jeweler. Is this just, in part, a consequence of the realities of the cost of doing business?

Thanks,

Ira Z.

 

[WinkHPD]

----------------
On 7/8/2004 6:09:05 AM Regular Guy wrote:



Cindy (or any others who would like to take a stab), you said regarding insurers: 'All they normally have to do is make you 'whole' which means they have to replace the stone.'

Can you say any more about that process? In particular, I'm interested in two things:

1) Regarding insurer behavior, do they look at the 4 Cs on the appraisal and endeavor to substantively match them, within the constraints of the price?
----------------

The insurance company will look at your documentation and through one of their replacement experts do their best to get you exactly what you had. If you desire a check, they will pay you the amount that it would cost them to replace with what you had, not what you have it insured for.

This means that the better your documentation, the better your chance of getting it replaced properly. If you have an EightStar or a Hearts and Arrows cut diamond, you must be sure that this is properly documented, and that the adjuster and replacement specialist know what in the heck that means.

If you have a fully documented appraisal, you will get a proper replacement. If you have an appraisal that states "One ladies diamond ring, valued at $5,000", then you will get something, but who knows what. I have done replacements with appraisals that were just about that informative, it was not easy. The insurance company will accept your premium based on what your appraisal says. When it comes time to write a check, they will write that check based upon what it will cost them to replace the item, AS DESCRIBED in your appraisal. It is your responsibility to make sure that the description is both accurate and complete when you purchase your insurance, not after the claim is filed!

Wink

 

[biz_gravy]

Thanks for all the responses and info. So now my next step (besides popping the ?) is to get the ring insured. Based on the fact that i payed somewhere in the $3400 range, would it be safe to say i would want to insure it for around for around $4500? Some one posted the price + 30%, so this seems like a nice round #. Anymore info on insuring it would be appreciated also, although i know there are many other threads on this, TY.

 

[Regular Guy]

I think there's 4 options, generally:

1) Chubb, which is constantly morphing: see posts here throughout. It's expensive, may or may not provide the option of cash out (somewhat uniquely), and can be hard to get, if you can get it (but try that guy at least once that's aluded to in the posts, David Stone, (try 800-473-6603), who is only licensed in about 20 states, I think he told me.
2 & 3) Jewelers Mutual and State Farm, each offering stand alone policies
4) a rider to your existing tenents or homeowners policy

and with 2, 3 & 4 representing typically replacement policies.

With State Farm, you may have both the option of paying a lower cost, and also, having the option of paying less than your appraisal, if you choose to, as frequently they're marked up. In my own experience, and contrary to the advice I've also read here -- despite what you tell the appraiser you want them to do -- they will really set the cost as they think best. And then, following that, as with Jewelers Mutual and my homeowners policy, you are constrained to only insure what is marked on the appraisal.

I did choose to go with a homeowners rider, both to get immediate coverage, and ease of future payments (it's tied into an already existing payment program).

Good luck!