Insure diamond before it''s shipped?

[hot4teacher]

Howdy ya''ll!

I''ve purchased a ACA H&A diamond from Whiteflash and I''m in the later phases of having a custom setting made. It may be ready to ship around Jan 22.

Granted I have still not seen the stone yet, should I look into insurance now, or wait until we''ve decided we are satisfied with the purchase.

Does insurance protect us if the ring is lost/damaged in shipping?

Just making sure I try to cover all the bases.

What would a year''s insurance cost to insure this.

Thanks in advance for any suggestions/opinions!

Dana

 

[jaz464]

Insurance costs vary tremendously by location and company so I can''t even give you a ballpark.

I wouldn''t insure the diamond until you have it. While in transit, WF''s insurance will cover it. I would just get it insured as soon as you get it. I went right from the Fed Ex station to the insrance company.

 

[denverappraiser]

Most dealers will ship by FedEx or USPS and will buy insurance that covers the stone against loss in transit to you. This coverage lasts up until you sign for the package and, if you return it, you will want to use a similarly insured carrier and this coverage will start as soon as you turn over the package. This leaves a brief window while you inspect the stone where you are uninsured. If this is of great concern, there are two ways to resolve it. Most of the dealers here will agree to ship to an independent appraiser for inspection prior to you committing to the final purchase. Aside from the other obvious benefits offered by the appraiser, this will put it under the appraisers insurance between the time when they sign for the package and when you take it home. If you decide against keeping the stone, it will never have left the appraisers control and therefore the chain of insurance will be continuous from the dealer to FedEx to Appraiser back to FedEx back to the dealer. If you keep it, you can bind the policy starting while it’s in the appraisers possession so that the policy starts as soon as you take delivery.

Alternatively, you can simply buy a policy before even seeing the piece. Ring up your insurance agent before the dealer ships the piece to you and ask how you can buy a policy. This will require some paperwork from the jeweler but they should be happy to comply. The jeweler will still ship via an insured carrier but your new policy will be in force as soon as you receive the package.

Typical insurance premiums will range from about 1-3% of the declared value depending on the coverages you require, the company you select, the risk profile of your community and similar variables. Most companies will not bind a policy on an unmounted gemstone.

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