Jeweler's Mutual Insurance Question

[audball]

Can I ask for some Jeweler's Mutual insurance application help, please?
We've received the initial appraisal from Pearlmans valuing the total ring we purchased off ebay at $3,800 for replacement.

The diamond is unset from that setting and is with BGD to be recut. We need to obtain insurance prior to the recut (and then the subsequent setting) to cover us just in case something happens.

Do we apply under the notion that it is still in tact as Pearlmans appraisal says? What then happens if something happens during the recut, is it covered?

It said they don't cover lose stones except those being set. Do I just insure the diamond for it's value under the notion that it's going to be set?

I'm very confused, but we can't move forward with approving BGD to go ahead with the recut until we have our insurance in place.

HELP!?

ETA: John said the setting was 14kt gold and weighed 5 grams with a retail replacement value of about 1,200 of the 3,800 appraisal, if that helps. It also did not include sales tax which in my state (FL) is 7%.

ETA again: I'm willing to talk to JM directly, but I don't want to say or do something that will keep us from being able to get insurance or something so I wanted to know what I was getting in to before I contacted them. What's ok to do? Can we just insure the stone for it's replacement value (~2600) and tell them it's being set and that we'll need to update the policy to include the value of it with its new setting once it's complete?

 

[LibbyLA]

audball,

I think I'd insure the ring as a whole (won't cost that much more than the stone by itself), then when you get the new ring, drop this current ring off the policy and put the new one on it.

liz

 

[audball]

audball,

I think I'd insure the ring as a whole (won't cost that much more than the stone by itself), then when you get the new ring, drop this current ring off the policy and put the new one on it.

liz

Hi liz! Thanks...I didn't think of that as an option! I've also put in an email to Lesley to ask what customers normally do for recuts. We'll see what her response is as well.

 

[audball]

Looks like Lesley and BGD recommend insuring it as a loose stone that is being set. The appraisal we have indicates that it's a set ring (which it no longer is). Ugh. I'm contacting Pearlmans to see what we can do but this is so confusing.

 

[audball]

I was also reading through JM's policies and it says they won't insure something that hasn't been appraised in the last 18 months. Is that just to get your initial policy or does that mean you have to get a new appraisal every 18 months?

 

[LibbyLA]

audball,

I've had JM for years. What happens with my policy is that every other year, I'm instructed to go to my local jeweler and have him check everything. He has all the measurements and weights for everything so he just plugs in the current value of the gems and metal and provides me with an updated list of values, which is sent to JM and they adjust accordingly. I'm pretty sure that hasn't cost me anything. This is the jeweler who's done my appraisals, BTW. I'm not sure how it works if you have an appraisal from, say, an online vendor.

Anyway, I definitely have not had to get new appraisals every couple of years.

liz

 

[LibbyLA]

audball,

The easiest thing to do would be to insure the ring as it was before it was taken apart... The $15 difference in price (give or take) between the diamond value and the ring value is probably not worth all the time you are spending trying to figure out what to do. And that's $15 for an entire year, so prorated for a couple of months (until you have new ring in hand), it's just a couple or three dollars.

liz

 

[audball]

audball,

I've had JM for years. What happens with my policy is that every other year, I'm instructed to go to my local jeweler and have him check everything. He has all the measurements and weights for everything so he just plugs in the current value of the gems and metal and provides me with an updated list of values, which is sent to JM and they adjust accordingly. I'm pretty sure that hasn't cost me anything. This is the jeweler who's done my appraisals, BTW. I'm not sure how it works if you have an appraisal from, say, an online vendor.

Anyway, I definitely have not had to get new appraisals every couple of years.

liz

This does help some. The jeweler we've been working with (setting wise, at least) is Pearlmans in Michigan, we're in Florida. Not sure how the updates would work in this scenario as I definitely don't want to send my ring out ever year and a half to have the value re assessed. Though if I end up getting it rhodium plated, maybe I could use that time to get them to redo it or something.

 

[audball]

audball,

The easiest thing to do would be to insure the ring as it was before it was taken apart... The $15 difference in price (give or take) between the diamond value and the ring value is probably not worth all the time you are spending trying to figure out what to do. And that's $15 for an entire year, so prorated for a couple of months (until you have new ring in hand), it's just a couple or three dollars.

liz

I'm not at all concerned about the cost. The total for insuring the ring as he appraised it plus sales tax was only $59/year. I'm just concerned if something were to happen to it while recutting or setting and they won't cover it since it was a loose stone.

 

[Dreamer_D]

I would send the documents in for the original ring and insure it as a whole, then get a reappraisal on the completed ring and update your policy. The policy does cover the diamond during a reset if the original ring was insured, and it covers the diamond during work a jeweler does on the ring. I checked. There is nothing in the wording of the policy that excudes damage during a recut, to my knowledge, and if that is not an excluded peril then they cannot deny a claim if damage happens during the process. I would not call and ask JM because they will likely not answer you based on a hypothetical. If the worst happens, deal with it then, and accept the small chance your claim will be denied.

 

[LibbyLA]

audball,

$59 seems high! I'm paying something like $1.10 per hundred, but I do think that there are places in FL that are more expensive for insurance. Maybe there's a minimum.

I would also find a local jeweler (or appraiser) to do an appraisal once you get the complete ring back, then use that appraisal for insurance and that jeweler for maintenance like replating. You don't need an everything-you-want-to-know appraisal, just something basic.

liz

 

[sonnyjane]

audball,

I've had JM for years. What happens with my policy is that every other year, I'm instructed to go to my local jeweler and have him check everything. He has all the measurements and weights for everything so he just plugs in the current value of the gems and metal and provides me with an updated list of values, which is sent to JM and they adjust accordingly. I'm pretty sure that hasn't cost me anything. This is the jeweler who's done my appraisals, BTW. I'm not sure how it works if you have an appraisal from, say, an online vendor.

Anyway, I definitely have not had to get new appraisals every couple of years.

liz

Hmm, this interests me. I have had JM since 2008 and have never received any requests for updated appraisals?

 

[LibbyLA]

Every other year when I get my bill, I'm directed to go to my jeweler to update the evaluation and there's paperwork for him to complete. The other years, I just get a bill.

I'm not sure how long I've had JM, but it's been for years, probably 12 or 15.

liz

 

[sonnyjane]

Every other year when I get my bill, I'm directed to go to my jeweler to update the evaluation and there's paperwork for him to complete. The other years, I just get a bill.

I'm not sure how long I've had JM, but it's been for years, probably 12 or 15.

liz

Interesting, I've only ever received a bill! I only have my wedding set and a pair of studs insured. I wonder if I'm just a small fry?

 

[audball]

I would send the documents in for the original ring and insure it as a whole, then get a reappraisal on the completed ring and update your policy. The policy does cover the diamond during a reset if the original ring was insured, and it covers the diamond during work a jeweler does on the ring. I checked. There is nothing in the wording of the policy that excudes damage during a recut, to my knowledge, and if that is not an excluded peril then they cannot deny a claim if damage happens during the process. I would not call and ask JM because they will likely not answer you based on a hypothetical. If the worst happens, deal with it then, and accept the small chance your claim will be denied.

Dreamer this is VERY helpful, thank you!

I'll talk it over with A tonight and see what his thoughts are. We have both choices.

John with Pearlmans offered to redo the appraisal for just the loose stone. We can do either way. So to a vote, which would you choose with both options on the table?


Libby --
I don't know if it's high for the area or not, it didn't seem high to me! But I input it at 4,066 since that's the 3,800 + 7% for sales tax and it came out to $50 which would be about 1.48 per 100 insured. We're in the Tampa Bay area of Florida.

Sonny -- maybe that's the difference? Libby how much do you have insured? We'll probably only have our wedding set as that's the only thing we will have of any value.