Insurance Questions

[dod]

Good evening all,

As I have posted here before, I just recently purchased an e-ring via the internet. It is a 1.02 H VS2 w/ excellent numbers. The ring is pave set with halo and .48 ct. This makes the ring a total of 1.5 carats. I paid $4316 total for the ring ($3400 for the stone and $900 for the setting). I got an appraisal from the company whom I purchased the ring from and it was $5800. Now, I know that this isn''t an independent appraiser, but will this do for my insurance? I got insurance today for $5800, but I know that the ring will appraise for more than this. Should I stick with this appraisal or get another one?

 

[neatfreak]

Insurance will only pay out the amount it costs to REPLACE not the amount it''s necessarily insured for. So I personally would make sure I''m covered but go with the lowest number possible.

 

[Regular Guy]

Dod,

In the FAQ section, Denverappraiser has written a helpful piece on what to expect from an appraiser. I copy from it here:

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"Insurance.

One of the primary reasons for getting an appraisal is for purposes of securing insurance coverage. In addition to your own uses, the insurance companies require it because it defines exactly what it is that they are insuring. Insurance is a highly regulated business and it varies greatly from company to company, from country to country, from state to state and even from city to city. It’s important to read the details of your insurance policy and to make sure you understand it before you sign. At the risk of repeating myself, this is a contract, read it.

Most insurance companies agree in the policy to replace a lost piece of jewelry with another one of ‘like kind and quality that has substantially similar age, authorship, and condition’ or other words to that effect. What they mean by this is that they will buy you another ring in the case of loss.

They generally will NOT cut you a check for the amount on the appraisal.

For this reason, it’s in your best interest to be certain that the appraisal that you supply them contains all of the information that you feel is important about your jewelry. If you looked long and hard for a blue fluorescent stone and would feel cheated if the company replaced it with one that was not, make sure that’s in the description. Designer names, model numbers, ‘hearts & arrows’ photographs, lab reports and the like can all be important. If it’s important to you, their client, it’s important to them. Most insurance companies really do want to treat you right but they can’t do it if you don’t tell them. At the same time, if they aren’t fulfilling their obligations, it’s helpful to have your ducks in a row and have everything documented.

Neil Beaty, GG ISA
Independent Appraisals in Denver"

 

[diamondseeker2006]

That sounds like a reasonable amount to me to insure it for. You got a deal on that diamond if it is GIA excellent or AGS0!

 

[WorkingHardforSmallRewards]

Is that a Round Brilliant? if it is...shoot, even I would have found the money for that if it were ideal!

 

[Regular Guy]

Date: 7/11/2007 10:23:50 PM
Author:dod
Good evening all,

As I have posted here before, I just recently purchased an e-ring via the internet. It is a 1.02 H VS2 w/ excellent numbers.

. Should I stick with this appraisal or get another one?

The point frequently made here....though YOU may know you have excellent numbers...does your documentation show this, such that a replacement with equally excellent numbers would clearly be required...presuming that''s what you want. Unless your insurance is of the type where a check is cut for you...you''d like the appraisal to help you to your satisfaction on this.