Diamond Feathering Has Caused a Crack?

[Delta1993]

I recently found out that my .73 ct I1 color G round diamond is cracked. The Gemmologist at the Jeweler stated that the crack was due to an external chip; however, the Gemmologist with my insurance company has inspected it and determined that the crack generated from a feather in the diamond and therefore has denied my claim for reimbursement under my insurance policy. They will not agree to have another Gemmologist on staff inspect the diamond; if I want another opinion then I have to send the diamond to a GIA facility for mediation. Does anyone have any experience in this area? How do you recommend I proceed from here?

 

[yssie]

Oh no, I'm sorry

Goodness, I just called JM to confirm they would take care of a stone that chipped or cracked because of an inclusion - or for any other reason. I don't have any words of wisdom for you, but that's a horrible policy and thank you for bringing to our attention that this could be an issue with some insurers!

 

[Lorelei]

Date: 4/29/2010 2:13:34 PM
Author:Delta1993
I recently found out that my .73 ct I1 color G round diamond is cracked. The Gemmologist at the Jeweler stated that the crack was due to an external chip; however, the Gemmologist with my insurance company has inspected it and determined that the crack generated from a feather in the diamond and therefore has denied my claim for reimbursement under my insurance policy. They will not agree to have another Gemmologist on staff inspect the diamond; if I want another opinion then I have to send the diamond to a GIA facility for mediation. Does anyone have any experience in this area? How do you recommend I proceed from here?

Hi Delta

I am so sorry to hear this....

Did the stone get hit then you noticed the damage and that is why you are claiming or you noticed the chip?

I am not well up on this, but I have heard some appraisers have skills in proving how damage was caused in some cases, what is known as forensic gemology. I will post the appraiser list below, maybe you could contact an appraiser on the list in your area to see if they could help or know of someone that might be able to. You would have to pay for this but it might give you a chance of proving the damage was not caused by a pre-existing condition so to speak, but it could also prove that it was, it is a chance you would have to take.

Maybe one of the appraisers or other experts can give you some better help presently.

appraiser tool

 

[Shadowplay]

I''m curious to know what company is underwriting your policy?

 

[FancyDiamond]

I don''t get it. Your insurance knew very well about the inclusion (GIA or AGS spec provided when insured). Even if the crack was caused by the inclusion, the insurance company approved it . If the inclusion was a problem or wiould become a problem, why did they accept your insurance payments and agree to insure your stone? What is the name of your insurance company? I want to make sure that I stay away from it.

Perhaps, bring the matter to the supervisor or someone higher up in the command chain.

 

[Todd Gray]

Very sorry to hear of your loss Delta... A little clarification and then a proposed solution:

A feather IS a crack, it is a fracture within the diamond... Some feathers are minor, others are extensive, most will not spread over the life of the gem, but some can spread - especially upon impact or pressure (such as that placed upon the diamond while it is being set).

There is an interesting point of contention to be considered when dealing with the insurance company and that is whether or not they were aware that your diamond had a "chip" or a "feather" at the time they insured the gem... In other words, did you submit a copy of the lab report at the time you insured the diamond? And does the lab report indicate that the characteristics included a chip or a feather? And did the insurance company insure the diamond while being aware that the clarity of the diamond was I-1? Because if so, then they insured the item "as is" knowing full well the risk involved with insuring a gem which contained either a chip or a feather... And thus they are liable because they were willing to accept your money while being fully aware of the potential for loss and/or damage.

I would not accept any recommendation made by the insurance company with regards to "their expert" because "their expert" is paid to represent them and definitely not you. You will need your own expert and preferably one with credentials including "forensic gemology".

I think that forum rules prohibit me from making specific references to gemologists, but I definitely have a few Great White Sharks in mind for this one

 

[denverappraiser]

Unless there’s more to this story than you''ve let on, they don’t have a case. Complain to the management at the insurance company and then to the state insurance commission. Prepare for a fight. I agree with Todd that the opinion of their staff gemologist is worth bupkis in this battle. Who wrote the original appraisal on which the policy was underwritten? Are they still in business? Is it the same gemologist you''re using now?

Is this your homeowners policy?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[adamasgem]

Date: 4/29/2010 6:01:46 PM
Author: Todd Gray
Very sorry to hear of your loss Delta... A little clarification and then a proposed solution:

A feather IS a crack, it is a fracture within the diamond... Some feathers are minor, others are extensive, most will not spread over the life of the gem, but some can spread - especially upon impact or pressure (such as that placed upon the diamond while it is being set).

There is an interesting point of contention to be considered when dealing with the insurance company and that is whether or not they were aware that your diamond had a ''chip'' or a ''feather'' at the time they insured the gem... In other words, did you submit a copy of the lab report at the time you insured the diamond? And does the lab report indicate that the characteristics included a chip or a feather? And did the insurance company insure the diamond while being aware that the clarity of the diamond was I-1? Because if so, then they insured the item ''as is'' knowing full well the risk involved with insuring a gem which contained either a chip or a feather... And thus they are liable because they were willing to accept your money while being fully aware of the potential for loss and/or damage.

I would not accept any recommendation made by the insurance company with regards to ''their expert'' because ''their expert'' is paid to represent them and definitely not you. You will need your own expert and preferably one with credentials including ''forensic gemology''.

I think that forum rules prohibit me from making specific references to gemologists, but I definitely have a few Great White Sharks in mind for this one

I agree with Tood and Niel 100%.
What insurance comapny is it.
Remind the gemologists supervisor that their "inherent vice" claim and obvious refusal to negotiate in good faith, MAY cost them treble damages under some state''s insurance laws, as well as lead to discovery and a class action suit on behalf of all insureds they played this game with.

They KNOW the risks, as ALL diamonds have CLEAVAGE planes as well as feathers which may intersect the same, and with a grade of I1, would expect some feathers. They accepted the risk of structural weakness by issuing the contract.