Chip and Insurance-Thoughts?

[MissSL]

Hi Everyone!

I had an appraisal done on my grandmother''s 3 stone platinum e-ring (that is now mine) last night. It is a beautiful piece and I want to use the center stone (1.76 round brilliant) in my engagement ring. The appraiser found a small tiny chip on the girdle. He thought the stone was fantastic looking and it is in amazing condition considering it was purchased either in the 1920''s or 1930''s I had to look into a microscope to see it-yes there it was a tiny chip. He is going to help me work with a diamond cutter in Scottsdale to have it polished out and said I would lose about .2 of the size which is not a big deal to me.

My question is-I am going to insure the ring with Jeweler''s Mutual now that the appraisal was done and then plan to unset the diamond fix the chip and then have it reset in a Michael B setting have it reappraised and then have the new ring insured with Jewlers Mutual. Do you think I will have a problem getting it insured with a chip in it-if they know I intend to have it fixed?

Not sure what anyone''s experience is getting a piece insured that has a small chip in it.

Thanks so much!

 

[jasontb]

Easiest way to find out (without a lot of speculation) would be to call them...

 

[pyramid]

MissSL

Do you mean the diamond will lose .2 in the repair or .02. I would say if it is .20 then the stone will drop from 1.76 to 1.56 and will have a different appraisal value so would need to be done after it has been fixed.

 

[MissSL]

Oh sorry- .02! Yes .2 would be an issue for me .02 is not!

Yes I Plan on calling them on Monday as they are not open today or tomorrow and just had this "on my mind" and thought others who have had similar experiences wouldn''t mind sharing with me.

 

[denverappraiser]

I agree with the above, ask them. I wouldn’t expect problems but I think it will have a lot to do with how the appraiser describes the piece. JM, and any other company with brains, won’t bind a policy on previously damaged goods. The interesting question is what constitutes damage. An otherwise completely clean stone with a chip as the grade setting inclusion might be accurately described as an SI2 (for example). As an SI2, it’s not damaged and, assuming the chip is not one that can be expected to grow, it’s not an inherent vice. Coverage should be no problem. If, on the other hand, they call it a Flawless stone with a chip out of it, that’s pre-existing damage and you would not be eligible for coverage.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver