Insurance question

[jetmal]

hi everyone,

I did a search dfor my question and did find some answers, however some of them are a few years old, so I wanted to ask the forum again, what you the norm is.

I have an appraisal for my new ring from the Jeweler.....it lists the retail price and then the price that I paid for it. Which amount do you recommend I insure it for?

Then I need to decide if I should take out a Chubb, or just list it under my homeowners....have to find out more about my coverage. I had my old set under my homeowners, but this new upgrade is worth a considerable amount more.

thanks for your time and opinions!

 

[dani13]

Appraisers many times give an over-inflated value of what a diamond is worth...I would insure it for a number between what you paid and what it was appraised for...or whatever you feel comfortable with. Your premium will be based on whatever number you choose. I know with Chubb alot of people have been saying lately that they make you insure it for the appraisal value...I think that is what happenned with us too, and we have Chubb. But I didnt mind paying the extra $$$ for their policy, they are great and it gives us piece of mind, and if anything happens to my ring they will cut us a check for what it was appraised for, which is quite a bit more than what we paid...

 

[jaz464]

I wouldn''t insure it for the full appraised value. Mine appraised quite a bit more also. I insured it for what I paid for it. Of course, I will get a new appraisal in a couple of years, so the value is in line with today''s prices. I go through State Farm. I do not have a homeowner''s policy with them. I am very happy so far.

 

[ChargerGrrl]

My Chubb agent was OK with my decision to insure it for an amount between what was paid, and what was on the letter of verification that WF sent along with the ring.

I highly recommend Chubb and my agent William (Bill) Castro. Do a search, and you should find his info.

GOOD LUCK!

 

[smappraisal]

Hi all,
Most insurers are more interested in the article description rather than the valuation attached to the item. An insurance underwriter such as State Farm, upon a claim being filed, is not going to simply write a check for the amount that the article was appraised. They are going to replace "like and kind" as inexpensively as possible! This is why the description of the article is so important. It is very important to provide the absolute most detail in doing the appraisal. In terms of valuating the article, it''s going to cost the average consumer approx. $13-15 per thousand of insurance coverage, so it is wise to be conservative when valuating the article but not insufficient and create a problem if it needs to be replaced. My rule of thumb is to appraise and valuate for about 10-20% over fair retail cost. That diamond solitaire that cost $6,000 at a fair retail price, I would appraise for $7,000. You would then be sufficiently covered for the next few years at which point it should be reviewed. Hope this helps.

Stephen Marino, GG
Professional Appraiser
Boston & vicinity

 

[RockDoc]

Date: 4/2/2006 8:10:38 PM
Author: 19th Hole
Hi all,
Most insurers are more interested in the article description rather than the valuation attached to the item. An insurance underwriter such as State Farm, upon a claim being filed, is not going to simply write a check for the amount that the article was appraised. They are going to replace ''like and kind'' as inexpensively as possible! This is why the description of the article is so important. It is very important to provide the absolute most detail in doing the appraisal. In terms of valuating the article, it''s going to cost the average consumer approx. $13-15 per thousand of insurance coverage, so it is wise to be conservative when valuating the article but not insufficient and create a problem if it needs to be replaced. My rule of thumb is to appraise and valuate for about 10-20% over fair retail cost. That diamond solitaire that cost $6,000 at a fair retail price, I would appraise for $7,000. You would then be sufficiently covered for the next few years at which point it should be reviewed. Hope this helps.

Stephen Marino, GG
Professional Appraiser
Boston & vicinity

Stephen,

What is Fair Retail Cost?

Who''s decision is it to determine what "fair" is?

Rockdoc

 

[jetmal]

ok...so now I am kind of confused......

19th , you say to include as much info as I can....my appraisal does not include all the specs of the diamond, etc....but I do have the cert.... do I submit both to my insurance???

 

[diamond_quester]

I recently got my e-ring insured and the insurance company refused to take a copy of my cert saying that it is irrelevant.

However, my insurance appraisal form identifies the source and number of the cert. (It doesn't repeat all the details in the cert.) I don't know if that requires them to find something similar to the item described on the cert (more than just matching carat/color/clarity), hope so...

 

[smappraisal]

Hi Cut Rock,
Hope I did not confuse the issue for you, but what I would recommend is an appraisal that includes the key components of the description of the article, i.e. measurements, color, clarity, cut grade (if available), polish, symmetry. Lastly, anything that is extraordinary about the piece. As you''ve heard before, a picture tells a thousand words, so a digital photo would be a great addition especially with an important piece. Then of course, the article being appraised needs to be valuated. I would then cross reference on the appraisal the certificate # of the grade report and then submit both copies to the insurance company. One thing I seem to find with the general public is a confusion between appraisals and certificates such as those issued from GIA,AGS,EGL. Certificates are strictly grade reports. They only address the quality of the diamond. They have nothing to do with money. That is why an insurance company is not going to accept just a copy of the grade report.They need a valuation so they can assess the risk they are taking on. Therefore, it is important to have it appraised (described and valuated would be better terms for this discussion) and then cross referenced with the lab grade report. Hope this has helped.

Stephen Marino, GG
Professional Appraiser
Boston & vicinity

 

[denverappraiser]

With most jewelry insurance policies, the insurance company is agreeing to replace lost property with a new item of ‘like kind and quality’ in the case of a loss. This means that instead of writing you a check for the bottom line value of the policy, they will attempt to buy a new item that is substantially similar to the lost one. The description in the original appraisal is where they get this definition.


Many of the insurance companies will accept almost anything for an appraisal, including a copy of the sales receipt and the lab report but it’s not the company that should be picky here, it’s you. If there is something important to you about the piece that you would like to be considered in the replacement, it should be included in the appraisal. By all means this includes a full copy of the lab report. You might want to include Idealscope images, ASET images, BrillianceScope reports, Sarin reports, brand names, authenticity reports, H&A images, photomicrographs – anything that helps document what makes your ring or diamond what it is. Think of it this way. A description of ‘Ladies platinum solitaire ring set with approx. 1.0ct. round diamond, SI2 clarity, J color’ will probably pass the underwriters of most insurance companies and they would find this to be a pretty easy replacement to do but you are very likely to be disappointed with your replacement if you shopped with the usual Pricescope enthusiasm for an awesome diamond in an awesome mounting, even if that description is superficially correct. As everyone here will tell you, all SI-2 J's are not the same.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[jaz464]

Date: 4/2/2006 8:10:38 PM
Author: 19th Hole
Hi all,
Most insurers are more interested in the article description rather than the valuation attached to the item. An insurance underwriter such as State Farm, upon a claim being filed, is not going to simply write a check for the amount that the article was appraised. They are going to replace ''like and kind'' as inexpensively as possible! This is why the description of the article is so important. It is very important to provide the absolute most detail in doing the appraisal. In terms of valuating the article, it''s going to cost the average consumer approx. $13-15 per thousand of insurance coverage, so it is wise to be conservative when valuating the article but not insufficient and create a problem if it needs to be replaced. My rule of thumb is to appraise and valuate for about 10-20% over fair retail cost. That diamond solitaire that cost $6,000 at a fair retail price, I would appraise for $7,000. You would then be sufficiently covered for the next few years at which point it should be reviewed. Hope this helps.

Stephen Marino, GG
Professional Appraiser
Boston & vicinity

Actually, my agent at State Farm said that I would be reimbursed with a check, were anything to happen to my ring/diamond.

 

[denverappraiser]

The typical State Farm policy allows for cash-out as an option in resolving a claim. The way they calculate the amount to pay is by presenting the appraisal description to one or more of their approved providers and asking them how much they would charge to replace the piece. They will offer this amount in cash in lieu of making replacement if the client prefers it unless this amount is greater than the face value of the policy.

It''s worth noting that not all policies are the same, even from the same company. They can and do vary considerably from state to state and many of the companies have several different insurance products that they might offer. Talk to your agent about your requirements and the company policies, this is what they''re paid for.
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[jetmal]

thanks everyone for your replies. My homeowners insurance will only replace....not give cash out. It would be $274 a year, and Chubb will be $270 a year, and will cut me a check no questions asked and then I can hunt for the perfect diamond again, instead of the headache.

 

[denverappraiser]

Jetmal.

Who''s your company and what state are you in?

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[jetmal]

I have my home/auto/umbrella with Farmer''s. And I''m in WI

 

[sfritz]

Most appraisals or valuations are done for insurance purposes. Insurance companies usually request the appraisal price, not the sales price.

When jewelers or appraisers inflate the value, it hurts everyone. It hurts the jeweler’s or appraiser’s integrity. It hurts the customer who pays more for insurance. Several jewelers have complained to me that customers demand a higher appraisal value to prove that they got a good deal. That’s not right.

Unless you purchased jewelry during a huge sale or through another discount circumstance, you should expect the value to be in line with the purchase price. A responsible jeweler will add a small margin to reflect anticipated price increases in the next couple years.

You don’t want to be underinsured, either. In the event of a loss, you want enough insurance to be able to replace the item quickly and easily.

If your appraisal value is significantly more than your purchase price, ask why. There may be a good reason for it. If not, don’t pay higher premiums than necessary.

Sue Fritz
Jewelers Mutual Insurance Company

 

[Modified Brilliant]

If not, don’t pay higher premiums than necessary.
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Great advice Sue. Sad story last week. A client was paying premiums for 25 years on a set of silverware appraised and valued at the height of the silver craze in January 1980. That''s why it''s important to re evaluate every 3-5 years as recommended by most insurance companies.

www.metrojewelryappraisers.com