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Insurance question - help

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Beacon

Ideal_Rock
Joined
Jul 14, 2006
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2,037
Since I am going to ship my stone and reset it I consulted Jewelers Mutal about insurance. Very nice people there.

But I have a big problem: I paid about 25K for this 2.27 F, SI1 GIA ex/ex/ex ring and plat setting. I got it from Blue Nile and it came with an appraisal at 37K. So if I insure it I have to pay a premium based on 37K. Well, that costs a lot more money!

But the stone is not worth 37K! It is only worth what I paid for it and I know very well that I can replace it for a similar price. Heck for 37K I sure wouldn''t have this stone - I''d have a much bigger one.

So I called Blue Nile and told them I want a new appraisal cause theirs is very overinflated and they would not budge one inch. They say this is the "retail replacement cost". But I know, as we *all* know, that is is bogus and even at a brick and mortar store I would never, every pay this much for a similar ring.

It is really a rip off cause I would have to pay a big premium and if I lost the ring they would not give me a check for 37K, all they would give me is a "similar like kind" ring to what I lost.

I think I need to hire my own appraiser to give a more realistic estimate of value. My question is: will I run into this exact same thing or can I show the appraiser my documents/purchase price and get an appraisal close to the real cost of replacing this ring?
 

starryeyed

Ideal_Rock
Joined
Nov 6, 2006
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2,398
Hi Beacon. I don''t know about Jewelers Mutual, but I do know that with my insurance - a rider on my homeowners - I can give them the appraisal AND the invoice and insure for any amount in between. You may want to ask JM. Good luck!
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,744
Hire a real appraiser and discuss the problem with them. If your purchase was relatively recent, I think JM is perfectly happy with the invoice although a properly done appraisal will contain a fair amount more information that will be useful if a replacement ever becomes necessary.

https://www.pricescope.com/appr_list.aspx

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

Beacon

Ideal_Rock
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Jul 14, 2006
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2,037
Thanks guys. JM told me that they *knew* that Blue Nile provided appraisals and they would ask for the appraisal rather than just the invoice and the GIA cert. Arghhh.

I talked to Nancy Stacy and she was so nice and helpful. She understood my problem immediately and said it happens all the time. So, I think she could give me an appraisal that more accurately reflects market value.

I have to say I am pretty annoyed with Blue Nile about this. But still the gal on the phone insisted they they had to do it this way, that they were using some sort of tables or something that they *had* to use. This seems strange.

Starryeyed, I will talk to my homeowner insurer too and carefully detail what I want. Hopefully they can help me better than JM. If not I guess I have to pay out again for a new appraisal.
 

jaz464

Ideal_Rock
Joined
Jul 11, 2005
Messages
2,022
I have insurance through state farm. My ring appraised for about $10,000 more than I purchased it for. I did not insure it for that amount however. I insured it for about $5,000 above what I paid. Really, I should have just used the amount I paid for it. If JM can''t work with you on this, I would consider another insurance company because I would not want to pay extra to insure it.
 

:)

Brilliant_Rock
Joined
Jul 25, 2006
Messages
1,864
  1. Date: 1/12/2007 4:49:26 PM
    Author: Beacon
    Thanks guys. JM told me that they *knew* that Blue Nile provided appraisals and they would ask for the appraisal rather than just the invoice and the GIA cert. Arghhh.

    I talked to Nancy Stacy and she was so nice and helpful. She understood my problem immediately and said it happens all the time. So, I think she could give me an appraisal that more accurately reflects market value.

    I have to say I am pretty annoyed with Blue Nile about this. But still the gal on the phone insisted they they had to do it this way, that they were using some sort of tables or something that they *had* to use. This seems strange.

    Starryeyed, I will talk to my homeowner insurer too and carefully detail what I want. Hopefully they can help me better than JM. If not I guess I have to pay out again for a new appraisal.
BN did NOT provide an appraisal with my loose stone, so this is not true
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
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8,744
Date: 1/12/2007 4:49:26 PM
Author: Beacon
Thanks guys. JM told me that they *knew* that Blue Nile provided appraisals and they would ask for the appraisal rather than just the invoice and the GIA cert. Arghhh.

Sometimes people *know* things that just aren’t so. Call Sue Fritz at JM and discuss it with her. Get the appraisal from Nancy anyway, it will provide a much better roadmap for the replacement process.


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

FightOn

Rough_Rock
Joined
Dec 17, 2006
Messages
31
Hi Beacon,

Nancy Stacy appraised my engagement ring and was able to give us an appraisial very close to what we actually paid, although she told us that the ring was worth 6-7K more than what we paid from a B&M store. Per my fiance, she was great to work with and would highly recommend her! BTW, we used Chubb to insure the ring. They were very easy to work with, did everything via mail and internet.
 

Modified Brilliant

Brilliant_Rock
Trade
Joined
Mar 24, 2005
Messages
1,481
With the tremendous growth of internet diamond sales, it''s more important now than ever for an appraiser to
explain insurance valuations to each client. It''s a real educational process that must be performed. The average
consumer has no idea how their insurance companies pay a claim. Luckily, the PS participant is able to read about
different insurance companies (pros and cons). This is a huge step in advancing the educational process.
I would like to see more participation from other insurance co. reps.

www.metrojewelryappraisers.com
 
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