Chipped my stone. Wah-wah...

[Xanthoria]

Somehow I've managed to chip by diamond. Woe is me! It's a pretty good sized chip that starts at the girdle and goes downwards on my 2.14 ct F color VS1 clarity platinum set 1924 engagement ring center stone.

How should I handle this? I know many of these are "how long is a piece of string" questions, but...

1. If I pay $ for a reappraisal I'll get reduced insurance payments? Currently about $1000 a year so - ugh! Worth it?

2. Stone is old - has a rough girdle, which I like Will this be lost if it's recut or polished?

3. What's it likely to cost to recut or polish, ballpark?

4. What are the hazards of just ignoring it... chances of the stone being further compromised?

thanks for any advice...

 

[MissGotRocks]

Can you get a picture of the chip? So, so sorry that this happened! I hope the stone is insured!

 

[LLJsmom]

Somehow I've managed to chip by diamond. Woe is me! It's a pretty good sized chip that starts at the girdle and goes downwards on my 2.14 ct F color VS1 clarity platinum set 1924 engagement ring center stone.

How should I handle this? I know many of these are "how long is a piece of string" questions, but...

1. If I pay $ for a reappraisal I'll get reduced insurance payments? Currently about $1000 a year so - ugh! Worth it?

2. Stone is old - has a rough girdle, which I like Will this be lost if it's recut or polished?

3. What's it likely to cost to recut or polish, ballpark?

4. What are the hazards of just ignoring it... chances of the stone being further compromised?

thanks for any advice...

Ok, this is just the opportunist in me talking. If the stone is old, why not send it to BGD and consider a recut to super blingy BGD standards? Heck, that is what I would do, in a heart beat! What a great excuse.

 

[Queenie60]

Since it's insured I would check with my insurance company for advise on how they would handle this.

 

[duckduckgoose]

oh no! Can you see it through the top of the table? (you said it goes downwards?) I'm so sappy and sentimental that I probably wouldn't recut it or give it up - would it be crazy to turn it in the setting so that a prong covers it and then you can pretend like it never happened? I have no idea if that would be the proper thing to do! But that would be my first thought if it was mine (this is assuming it is round)

 

[foxinsox]

You have a 2+ carat F OEC or OMB? please please please for the love of all things sparkly, don't recut it to be a MRB! Nothing against super sparkly MRBs but you have a rare stone in a high colour. It would be a terrible shame to lose that.

Singlestone and Brian Gavin do rehab/repair/recuts so you could contact them with pictures of the damage and ask what can be done?

 

[denverappraiser]

This is almost certainly a covered loss if you've got a policy in force. Call your agent.

If there's no current policy in force and you want one, you need to get it reappraised to properly document the current condition. Call your appraiser. This with the qualifier that your insurer may kick you out at underwriting because of preexisting damage.

Several good cutters are mentioned above. It's a pretty complicated deal but usually the fee to inspect a stone, estimate results and discuss it with you aren't too bad. They don't all charge the same for this but they should be happy to discuss it with you before they start. From that, bids to recut are free and you can decide if you want to proceed. Make sure to discuss with them the risks. The cutting process comes with no guarantees.

 

[Xanthoria]

OK sorry for the iPhone pics but hopefully you can see the chip (clearest in the last pic)

duckduckgoose, I don't think you can really see it unless you look closely from some angles?

I have swiveled it around to the prong a bit to hid it. foxinsox I love the cut, and since this is my great, great aunt's ring, I do want to keep things as original as possible. I don't know if it's an OEC or OMB (how to tell?) but I like the rough girdle and the little culet.

I'll contact Singlestone and Brian Gavin and my insurance company for more info. I can totally live with it like this but wonder how much is the value affected? And will I be saving lots on insurance if I claim, or will my other insurance bills go up? If I claim will they give me a new diamond (don't want!) or pay for fixing this one? State Farm, BTW, separate rider.

 

[denverappraiser]

Your agent should be able to answer most of these questions, and asking questions isn't the same as filing a claim. This is what they're for.

'Value' is going to be affected in a big way. This definitely calls for an evaluation by a pro. In practice, they're probably going to refuse to insure you because of pre-existing damage unless you fix or replace it. If you file a claim, take the money and don't do the repairs, they will almost certainly cancel the policy (the rider part). If you file a claim, it'll count as claims activity on your homeowners policy. 1 claim is fine. 4 claims over too short a period is a serious problem. That means the answer depends on what sorts of other claims activity you have (among other things). It shouldn't affect your other insurances but your homeowners is almost certainly the biggest one you have. As with the above, ask your agent.

BTW, that doesn't look like an OEC to me.

 

[denverappraiser]

1. If I pay $ for a reappraisal I'll get reduced insurance payments? Currently about $1000 a year so - ugh! Worth it?

That seems pretty high given your description of the pre-damage grading unless you've already got claims history problems or you live in a super expensive place, like NYC.

 

[Xanthoria]

I live in the most expensive housing market in the USA... sad face

 

[Xanthoria]

Well I got some numbers from my jeweler (who is very sad for me) and I still don't know what to do!

1. replace the diamond - I pay $1000 deductible
2. remove, recut and reset the stone - $2200 (I pay $1000 deductible, insurance pays rest)
3. turn diamond around, redo prongs to hide chip - $400
4. just reappraise and pay less insurance - $100
5. go nuts: claim and get a new diamond, melt down the platinum and make a new ring - cost be damned!!!! (actually how much would this cost? No idea - I have access to a wax 3d printer and can get the 3d modeling done free)

I will amend that my insurance is actually closer to $800/yr, but that's still a chunk for me, so I'd like to pay less. Options 2-4 allow that. And since I can never sell the stone, but agreed to leave it to my niece, it's actual daily value is moot except for the insurance payments I make.

I guess I'm just really sad this happened, and that my great grandmother's diamond lasted 92 years until I broke it...

 

[Coralfish]

Sorry if I'm not seeing it as an option you provided here, but - if the stone has sentimental value, can you put in a claim to replace the diamond and do so, and, in addition, offer the insurance company a sum to 'buy back' your diamond (as they will have taken ownership of it in exchange for granting the claim) and set it into a pendant to pass on in the family. Obviously finalise, in writing, the cost of the buyback with them before you proceed to ensure it is financially manageable for you (and indeed to establish whether it would be a desirable option). The stone ought to be reappraised by them as being worth significantly less now due to the damage, hence the claim plus repurchase may be a viable option.

ETA: I would not recut it. From what you have shown us, I don't know it would survive the wheel without a significant loss in weight, if it survives at all.

 

[Xanthoria]

Coralfish, that's certainly an option the insurance co mentioned but in all honesty I can't afford it at even half the current value.

 

[Coralfish]

I understand. Is their price definitely half? It may be less, it doesn't hurt to ask.
Also half the appraised value may equal current market value - well, definitely iron out all these minutiae before finally rejecting that option.

Only you can measure your sentimentality and attachment to the stone - if you imagine the replacement stone, in your old setting, and the insurance co having your old stone in their paws - you know, you've boxed up the old diamond, left it at Fedex, it's gone forever - does it make you go cold? How would you feel about the new rock?
Or, does it sort of feel an 'alright' option, having a new stone? You still have something you can pass on. Investigating your feelings around this issue may lead to the solution.

I'd also want to know whether you'll get a cheque toward a new stone, or will you have to go via a 'recommended jeweller', or will the insurance company offer your three or four GIA certs and tell you to pick one from the paper... sorry, no idea how it works, but it'd be instrumental in how you choose to move forward.

 

[Xanthoria]

Good questions and a good thought experiment Coralfish!

I do feel "alright" about a new stone - in that I would have rectified the breakage. On the other hand I'd still be stuck with the insurance tab for the next 40 years...

I did find out my insurance will send me a check, so that's good news. I am thinking that means they take the entire ring though - and it has 10 other small diamonds and the platinum of course.

And I don't know what the "salvage value" of the ring is - even if it's 1/4 of the appraised value, or 1/8 I can't really afford it, nor do I want another ring to insure (I wish I could afford to, but it ain't happening.)

I also contacted one of the popular diamond people mentioned on this board and the person I spoke to laughed at me when I told them of the valuation, without ever having seen the ring, stating it was wildly over insured!

Now why would my jeweler appraise it for loads more than it should be valued at? That only benefits the insurance company, or the jeweler if they were using it as a sales tool - and I didn't buy my ring from this appraiser.

 

[Coralfish]

Oh well that's positive that you'd feel okay about a new stone, I get what you mean about rectifying the breakage.

Bumping for others to give more advice re the rest.

Regarding this overvaluation and subsequently inflated premiums. For the number of years the ring's been insured what % of the payout have you covered in premiums? Also, are you with Jeweler's Mutual/Perfect Circle - they've a stellar reputation here though one member had probs. I'm linking her thread just incase it or its follow up had any useful info re premiums

[URL='https://www.pricescope.com/community/threads/heartbroken-perfectcircle-outcome.212168/']https://www.pricescope.com/community/threads/heartbroken-perfectcircle-outcome.212168/[/URL]

How does the potential payout cheque compare to equivalent GIA F VS1s, loose stone only, on the market right now? I'd concur with Denverappraiser that it's not a classic OEC so maybe look at Jewels By Grace for the equivalent spec Transitional Cut diamond if you feel that's closer in cut.

Re if you managed to buy the old stone I personally wouldn't insure it. With the damage it mightn't even be insurable. Set on a strong 16 or 18" chain as a pendant it should be relatively safe from further damage etc. If you haven't a quote for buying it back from the ins. company yet I'd definitely get one as it would be difficult to proceed without you knowing all the facts.

Anyway hoping others are along soon with some more advice!

Also I don't know whether you're comfortable sharing actual numbers (or even whether it's a good idea to) but could it be that the amount you've paid out in premiums actually covers the market value of a replacement stone.

 

[diamondseeker2006]

Insurance valuations are notoriously inflated, and it is so sad to see people overpay for insurance. Does the diamond have GIA grading? If not, you likely really have been overpaying for insurance as the specs and value may both be inflated.

The setting has little value. It can't just be melted down and the metal be reused. All rings would have to be sent in to be refined and you don't get your own little bit of metal back. It is still possible the setting could be reused even if the stone is recut, though.

What is often the case with antique diamonds and girdle chips is that many have very to extremely thin girdles at least partially. So this could happen again if that is not the case. If you intend to keep the stone, I would send it to someone who can evaluate it for girdle rehab and repair of the chip, if possible (and NOT a local jeweler). Since the diamond is an heirloom and you want to keep it, then repairing or recutting it seems to be the best option.

 

[Xanthoria]

So, in theory, if the insurance covers $100 (obviously not the actual numbers!), and the ring was valued in reality at $30, with the stone being $20 of that, I can get $100 from the insurance, buy a $20 stone, have it set for $5 and keep $75?

Wow. Well I might just do that.

I have never been wowed by the setting at all, and we had to spend $1000 to have the prongs beefed up as they were almost worn to nothing when I got the ring. I'll find out if my mother thinks that's an OK plan.

Happily I have only been paying the insurance for 4 years so I can come out ahead on insurance for once!

 

[Tourmaline]

Option 3 (turn stone so chip is hidden by a prong) is massively overpriced. It should cost $50. Your jeweler is milking this.

 

[chrono]

So, in theory, if the insurance covers $100 (obviously not the actual numbers!), and the ring was valued in reality at $30, with the stone being $20 of that, I can get $100 from the insurance, buy a $20 stone, have it set for $5 and keep $75?

It's usually the opposite. You pay an inflated premium, the insurance company will replace the bare minimum and they will pocket the difference.