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Insurance Company Made this Offer...

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
Hey all,

Some of you may remember my insurance issue regarding my wife's broken/cracked diamond.

It is a GIA certified emerald cut diamond, 1.36, F color, with a very good cut.

I had to send it to the insurance company diamond expert/lab, and they have now offered me the diamond THEY found, after looking at the two appraisals I sent them. One from a local independent jeweler, and one from the jeweler we purchased the diamond from originally.

Both jewelers independently put the replacement cost @ $10500.00 + tax.

My insurance company has offered to replace the diamond with a comparable one(according to them) that will cost them 9300.00.

I still have to discuss this with the agent, although I briefly mentioned the importance of the cut and shape of the stone. I also mentioned that I was extremely particular about these things and not any stone will do.

Any thoughts on how to get this across clearly to them?

Should I ask for the GIA specs on their replacement stone or should I just argue up the amount to what it will cost me to replace the stone locally?

Advice and opinions are appreciated.
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
56,145
You need to see a photo of the stone and the lab report. I wouldn't accept it without the opportunity for you to get an independent appraisal. It is usual for them to pay less for a replacement stone than the insured amount. The main thing is that the diamond is a fair replacement of the one that was damaged. Insurance appraisals are almost always inflated anyway.

I'd see what they have to offer. You don't have to take it. Let them try and if they can't find one, then seek a cash settlement. But it probably won't be the insured amount, it'll be closer to what their replacement diamond would cost them.

Sorry to hear that happened and hope you can find a good replacement soon!
 

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
Thanks for the advice.

That's what I was thinking too. The price for a similar stone on bluenile.com is 10-11k so it isn't that far off.

The biggest thing is I looked at 50+ diamonds before I selected this one for my wife, so I very much doubt the ONE they chose is going to be the one I want.
 

Karl_K

Super_Ideal_Rock
Trade
Joined
Aug 4, 2008
Messages
10,451
Paperwork is important here.
What did the paperwork you used to bind the policy say?

If your going to reject the stone and or the amount you need to have a valid reason it isn't a "like kind" replacement.
Here is where a really detailed appraisal with images/is/aset being used to bind the policy is worth its weight in gold, it gives you a lot of potential reasons to say it isn't "like kind"

If the original stone was gia graded my first step would be to ask for the gia report # and weight of the proposed replacement and look up the report.
It isn't gia graded and the original was then it isn't "like kind" right there.
 

denverappraiser

Ideal_Rock
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Jul 21, 2004
Messages
8,825
This is a pretty typical sort of way to process an insurance claim and by all means you can and should shop it. They should be prepared to give you a copy of the GIA report on the one they're offering and you can show both it and the damaged stone to your own prefered source to discuss both whether or not it's comparable and what THEY would charge to replace it. If your guys are price competitive the insurance companies are usuallly pretty cooperative but, not surprisingly, they do tend to choose fairly price competitive vendors. Arguing that it would cost more at some stores than others is correct but it's not likely to get you either a higher payout or a replacement from the expensive joint.
 

ame

Super_Ideal_Rock
Joined
Jul 7, 2004
Messages
10,763
I would seriously simply say that you must be completely involved at all steps. They cannot select or source anything, you do it with the jeweler you want, they pay for it.
 

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
I think my argument revolves around the fact that I spent 40+ hours picking out a stone, looking at different diamonds in New York and here in Seattle. They were all GIA certified etc.

The chances of them choosing a stone that meets my specs the first time is extremely unlikely, but I guess we will see.

Their other option is sending out an insured stone for me to inspect, and me sending it back multiple multiple multiple times.
 

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
Cushionhelper:

Thanks.

The most difficult part so far is listening to a non-diamond expert(the adjuster) explain to me how THEIR lab/diamond fellow knows everything and is certified.

The reason this is bothersome is I doubt very much he has my best interest at heart, and doesn't care what stone they send me as a replacement. He couldn't care less about the cut or class of stone.

In addition to that, fancy shapes are so subjective, a stone that looks amazing on paper might look terrible in person.

I'm still trying to figure out if the adjuster understands or just doesn't care.
 

Karl_K

Super_Ideal_Rock
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Moosejaw|1319567314|3047389 said:
I'm still trying to figure out if the adjuster understands or just doesn't care.
The adjusters job is to make you go away as quickly and cheaply as possible.
Unless the insurance company is jewelery specific the adjuster likely has no idea about diamonds beyond the very basics.
 

denverappraiser

Ideal_Rock
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Jul 21, 2004
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8,825
Who is the insurance company here?

They've given a $9,300 price for replacement. In most cases they're happy to allow you to spend that with an alternative vendor if you don't like theirs but the rules vary quite a bit from one company to the next. It's not clear to me if the heart of your question is that you don't like their recommendation of a provider and you would rather shop elsewhere, if you don't think $9,300 is sufficient to make you whole again, or just that you've been paying premiums to have a $10.5k limit and you want to get $10.5k out of them.

Is the original selling jeweler still around? Have you talked to them about doing the replacement?
 

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
Denverappraiser:

Originally they asked for an appraisal, which I sent from the original jeweler, and another local independent jeweler.

Once they received them they asked to see the ring in person I shipped it insured.

Their lab took a look, and gave their price. It's only a $1200 difference essentially, but the amount of time I will spend dealing with them, and them dealing with me to get the right diamond could be a lot.

The original seller is still in business and sent them the replacement amount.

The ring itself was insured for $15000, so I am not asking or waiting for the full amount, just the appropriate amount to purchase from a jeweler I choose and trust.
 

denverappraiser

Ideal_Rock
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Joined
Jul 21, 2004
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8,825
I agree with you. If the original jeweler is around, will do the job for $10.5k with a $15k policy limit, and that's what you want, I"m quite surprised that they're yanking your chain over this.

As was mentioned above, the key is defining 'like kind and quality', and this is going to come down to the description details and photographs in your appraisal. Unfortunately, as you are sensing, you may be in for a fight. If this is your homeowners policy, consider this experience a lesson about whether you want to continue to do business with these folks with regard to other things.
 

Moosejaw

Shiny_Rock
Premium
Joined
May 14, 2003
Messages
285
I do like my insurance company, but am not super happy about how they are handling this situation.

Do you have any recommendations on jewelry only insurance companies?
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
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8,825
Are you in the US?

Gemshield, Jewelers Mutual, and JIBNA are the only ones I know of who offer stand along jewelry policies and ALL use a similar procedure to what you're facing although they generally seem to be more cooperative than your guys. I rather like keeping it separate from my homeowners policy because I don't want a jewelry claim to affect my home but there is a convenience to one stop shopping that's hard to dispute. That's up to you. Both personally and professionally, I've been a Jewelers Mutual client for many years and have been very satisfied with them. When people leave things with me for appraisal, it's a Jewelers Mutual policy that covers their goods while in my care.

Insurance recommendations is a topic that comes up fairly regularly in the forum and you'll find lots of discussiion about it if you search for 'insurance'.
 
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