How many of you get appraisal and insurance for your rock?

[skykid]

Hi all,

I finally did it! Thanks to PS and all the information I got here which helped me big time in picking out the diamond I want. You guys are awesome!

So I will get my 1.61 carat, EX cut, D, SI1 stone very soon and I''d like to know what you guys think about appraisal and insurance. My questions are,
1. I got the diamond from bluenile so none of the ASET or IS reports were given. Would I be able to get them from appraisal? If not where can I get them from?
2. I heard appraisal is not necessary unless you insure the diamond. Anybody have idea how much the insurance would cost? is it based on the amount of $ on the appraisal?

Thanks!

 

[BAM54321]

Skykid- Some appraisers can provide ASET and IS (the one I used could, but I already had them). I used Jewlers Mutual and it cost me approx 1.5% of the appraised value per year. Check out their site...they have a tool that will give you a fairly precise idea of the cost. An insurance company couldn't provide insurance without some type of appraisal to etsablish the value of what they are insuring. I would advise that you use the 'Knowledge' and 'Resources' sections above to get more information about the topics. There are more reasons than just insurance to consider an appraisal. For instance, how are you going to be sure that the stone you recieve is the actual stone that you purchased? I don't want to think or hope...I want to know. Perhaps your the same. My appraiser showed me first hand that a stone I had sent to her had some flouresence- even though the GIA cert said none.

 

[bgray]

i used my bill of sale.

 

[BAM54321]

I stand corrected- as Bgray pointed out, a bill of sale, as opposed to an appraisal, could establish value if your insurance company is willing to accept that.

 

[HVVS]

With a diamond of that quality, provide as much specific detail as you can regarding dimensions, angles, cut, clarity, and performance. That holds the insurance company to a standard so that they can't just make you accept a lesser diamond as replacement. Or it at least makes it a lot tougher to replace it with less.

 

[ACN]

Just to give you an example of the insurance price. Appraised value ~$32k, took out an insurance policy through home-owners and it costs $350/year in Chicago. Thus, it will take many many years (50++) to pay more for insurance then the value of the diamond.

The insurance company said that they did not need ASET/IS images, ect, and that we would be able to pick out our own replacement diamond up to the appraised price, however, I still sent in all the images I had, as a "just in case." Furthermore, I made sure my appraiser included all the specifications (branded H&A, ect), just in case.

I found the renters/home-owners addon policy to be the most affordable coverage. JM wanted ~$600-700/year if I remember correctly, while Chubb wanted more then that as well.

 

[bgray]

My stone was purchased for close to $100,000. I used the bill of sale and GIA cert for Chubb. Full cash payment for loss or damage.

 

[denverappraiser]

Date: 12/12/2009 12:34:40 AM
Author:skykid
Hi all,


I finally did it! Thanks to PS and all the information I got here which helped me big time in picking out the diamond I want. You guys are awesome!


So I will get my 1.61 carat, EX cut, D, SI1 stone very soon and I'd like to know what you guys think about appraisal and insurance. My questions are,

1. I got the diamond from bluenile so none of the ASET or IS reports were given. Would I be able to get them from appraisal? If not where can I get them from?

2. I heard appraisal is not necessary unless you insure the diamond. Anybody have idea how much the insurance would cost? is it based on the amount of $ on the appraisal?


Thanks!

Insurance is available without an appraisal from most companies if you have a reasonably detailed sales receipt. As mentioned above, there are several other reasons that people seek out independent appraisals including the matching of the stone to the lab report, a damage evaluation, quality and condition of the mounting, documentation and photographs for future record, independent witness that the item exists and is what it is, documentation of the details for use in future replacement if the need every requires, details about the stone and/or mounting that are not included in the lab and sales paperwork and the opportunity to get a second opinion about what has been said in the sales presentation. It’s up to you to decide if any of this applies to your situation but if the only objective is to secure insurance, insurance underwriters will accept nearly anything, the weaker the better (for them). The reason for more detailed information is to protect YOUR interests, not theirs.

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

 

[Cehrabehra]

I find that the level of detail is more important if you have a WELL CUT stone. Because if they just need to replace a 1.61 D SI1 stone it''s not hard to do so. Proving the CUT of your stone has value is tougher. Not sure "EX" is specific enough to do so. Plus, it would give you more tools to understand what you got and be able to return it in the 30 days if you find that it isn''t quite what you thought you bought.

 

[bgray]

Date: 12/12/2009 12:07:37 PM
Author: Cehrabehra
I find that the level of detail is more important if you have a WELL CUT stone. Because if they just need to replace a 1.61 D SI1 stone it''s not hard to do so. Proving the CUT of your stone has value is tougher. Not sure ''EX'' is specific enough to do so. Plus, it would give you more tools to understand what you got and be able to return it in the 30 days if you find that it isn''t quite what you thought you bought.

depends ONLY if replacement verses cash payment

 

[Cehrabehra]

that''s true - but replacement is less expensive to pay out every year.

 

[Modified Brilliant]

Also, don''t forget that an independent appraiser may find non-diamond issues
that can be corrected before a problem appears. All diamond setters are not created
equal. Improper setting methods and prongs that are not all tight are just a couple
of issues that appraisers often encounter. Of course, emphasis should be on the diamond
itself but a complete quality control inspection by an appraiser may prevent future
headaches.

www.metrojewelryappraisers.com

 

[bgray]

Date: 12/12/2009 12:23:02 PM
Author: Cehrabehra
that''s true - but replacement is less expensive to pay out every year.

depends on the current prices. also it depends what you pay for the stone and ring and what it costs to insure. in my case insuring the purchase price only is more cost effective than the thousands extra to insure a current retail replacement.

 

[denverappraiser]

Bgray,

In my neighborhood I’ve been quoted 3x the rates for Chubb vs. Jewelers Mutual and in nearly every market it’s more than double for the same declared value. Although I agree that the coverage is better, if your appraisal is prepared in a reasonable way it’s coming at a significantly higher cost. If your appraisal isn’t done in a reasonable way, talk to your appraiser or seek out a different one.

Now I''m curious. What''s your city? What''s your declared value and what''s your premium with Chubb?

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

 

[kenny]

I have never needed the services of an appraiser.

Since I live close by, I did (on two separate occasions) drive diamonds I bought online directly to GIA to verify they matched the report.

Both times it was free, but I think they now charge for verification service.

 

[bgray]

Date: 12/12/2009 6:19:05 PM
Author: denverappraiser
Bgray,


In my neighborhood I’ve been quoted 3x the rates for Chubb vs. Jewelers Mutual and in nearly every market it’s more than double for the same declared value. Although I agree that the coverage is better, if your appraisal is prepared in a reasonable way it’s coming at a significantly higher cost. If your appraisal isn’t done in a reasonable way, talk to your appraiser or seek out a different one.


Now I''m curious. What''s your city? What''s your declared value and what''s your premium with Chubb?


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

Professional Appraisals in Denver

NYC, 90,900, 2643.00 (also includes some blanket coverage for some other things)

 

[Amethyste]

Jewelers mutual quoted me $1,100/yr for my 5.13Ct Yellow diamond.

I went with Gemshield instead. It''s not a cash out option, but I can live with the $700 savings a year.

 

[Allison D.]

Insurance becomes worthwhile at the point that you can''t comfortably pay for a replacement out of pocket in the event of loss. With a 1.61 D stone, I''d imagine you''d feel the pinch if you had to replace it, so I''d likely insure at that level.

Appraisals are helpful for the many reasons stated. Not only do they help provide more detail on the stone/ring for better replacement through insurance, they also inspect the ring to be sure it hasn''t incurred damage during setting, etc.

 

[denverappraiser]

Date: 12/13/2009 12:12:45 AM
Author: bgray

Date: 12/12/2009 6:19:05 PM
Author: denverappraiser

Now I'm curious. What's your city? What's your declared value and what's your premium with Chubb?

Neil Beaty

NYC, 90,900, 2643.00 (also includes some blanket coverage for some other things)

Thanks.

The JM quote for that is $2454. I agree with you that this is close enough that the additional cost for Chubb is well worth it. If you would consider moving to beautiful Osborne Kansas the JM price drops to $1364 and the decision becomes a little less cut and dried. For people with lower declared values the difference is even more extreme because the percentage charged by JM goes up with higher values and with Chubb it seems to go down (and most people below $15k or so seem to have trouble getting a Chubb policy anyway). For most of the country a $0 deductible JM policy with a 15k limit and no other modifiers will cost $150. In NYC and LA it’s $300. With Chubb it’ll be over $400 nearly everywhere. If the declared policy limits are within line with what it’s really going to cost to replace the piece, the appraisal properly describes the attributes so that there's no downgrade with the replacement, and the desire is to actually replace the piece in the case of a loss instead of simply banking the money or diverting it to some other use, this is a significant savings for putting up with a somewhat more cumbersome claims process.

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