Loose stone insurance while being set at Whiteflash: Non-US Resident

[uwphysmed]

Question #2:

I''ve arranged for my loose stone to go to AGA (DiCamillo) to ensure it matches the GIA report. I then want it to go to WF to be set into a custom piece. The issue: I want the stone to be insured for the appraised value while it''s being set in case something happens, but WF won''t cover it since they don''t own the stone.

I was a bit surprised by this, as I''d be happy to pay some premium to have WF assume the risk during the setting (as is done at B&M stores near here) but they were insistent I''d have to sort out insurance myself. As a non-US resident most places don''t want to sell me a policy for just 14 days, and to get it insured here in Canada will require me bringing it across the border first (it''s currently in NY), which will mean 2x shipping charges.

I don''t own a home, so add-on insurance isn''t possible, it must be a standalone policy. Anyone have any suggestions as to the easiest way to proceed? WF was surprisingly un-helpful here, the rep seemed a bit put off that I wasn''t going to buy the stone from them...

 

[D&T]

do you have to tell them that you only need to insure for 14 days? just insure it, and once done, can you not cancel the policy? just a thought (check into whether you get your premiums returned though) I revised my policy and cancelled an item after 30 days, and I was returned some premium however I don''t know about cancelling the policy altogether

 

[denverappraiser]

Are you certain that your insurer requires that the property be physically present in Canada at the beginning of the policy? This seems like an odd requirement if they are prepared to insure it while WF is working on it in the US. Presumably you can provide evidence that you own it and the report from Chris, which can be delivered electronically is evidence that it exists and is undamaged. That's usually what they're looking for in order to bind a policy. Are they insisting that someone from the company inspect the property as well? By the way, I wasn't aware of a Canadian company that offered this sort of coverage at all and it's a question that gets asked fairly regularly. Who is your carrier?

You mention that you want it insured at the 'appraised value'. Check with your insurer about how they handle claims on this sort of merchandise. Usually they are agreeing to replace a lost or destroyed item with another of 'like kind and quality' rather than agreeing to cut you a check for the declared value. The policy limit, which is generally based on the appraisal you submit, is the maximum limit of liability, not necessarily the expected amount that would be paid in the case of a claim.

Why do you wish to cancel the policy after 14 days?

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

 

[uwphysmed]

Date: 10/22/2009 8:36:45 PM
Author: denverappraiser
Are they insisting that someone from the company inspect the property as well? By the way, I wasn''t aware of a Canadian company that offered this sort of coverage at all and it''s a question that gets asked fairly regularly. Who is your carrier?

Yes - that is what the one agent had suggested might be necessary for them to write the policy. BUT (big but) they are getting back to me today about whether they''ll actually do it, since the agent had never been asked before. So who can I buy this kind of coverage from in the US?

Why do you wish to cancel the policy after 14 days?

This was in reference to me using a US carrier - that time will cover the setting, then I''ll seek insurance here in Canada for the completed piece.

 

[uwphysmed]

Date: 10/22/2009 6:48:45 PM
Author: D&T
do you have to tell them that you only need to insure for 14 days? just insure it, and once done, can you not cancel the policy? just a thought (check into whether you get your premiums returned though) I revised my policy and cancelled an item after 30 days, and I was returned some premium however I don''t know about cancelling the policy altogether

In my (limited) experience, the penalties for cancelling early are designed to prevent you from using 1-year policies as temporary coverage solutions. Revisions are a different story, so long as you still have a policy with the company they''re more likely to make adjustments.

I was just really surprised that WF wouldn''t assume the risk (for a fee) under their insurance - when I asked about setting a stone locally, most B&M''s said they would insure the stone during the process for an extra $100-200, which I would be fine with paying.

 

[denverappraiser]

Sounds like a reason to go with your local setter. Why are you avoiding them? Chris may also be able to arrange a setter in Philly who will agree to accept the liability.

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

 

[uwphysmed]

Date: 10/23/2009 9:56:03 AM
Author: denverappraiser
Sounds like a reason to go with your local setter. Why are you avoiding them? Chris may also be able to arrange a setter in Philly who will agree to accept the liability.

Well the stone has to go to WF for them to make up the custom setting, so it seemed silly to have it all there and not have them put it together (bezel set halo). Still waiting for StateFarm (who said they might do it) to get back to me about whether they really want to photograph it or if the appraisal documents will do. I can''t imagine the agent who took photos of my motorcycle coming out to try and take a picture of a loose stone, seems silly to me...

 

[uwphysmed]

Just for completeness'' sake: StateFarm just got back to me and the person I originally spoke with was incorrect - they will not insure an unset stone, they only cover set pieces.

So back to the drawing board trying to find a reasonable US company, eyeballing Jewelers mutual now...

 

[DavR]

That’s interesting, I have state farm and they insured my loose stone last week. There is a jewelry clause in the homeowners insurance. I promptly called the next day and canceled the jewelry clause though as I had sent the diamond off to be set so it was no longer in my possession. My jeweler was nice enough to cover the diamond during the shipping process and once I get it back I will only have it for a couple days before the ring is technically not in my possession any more.

 

[canada_ham]

hi uwphysmed

sounds like you are going through something similar to what i am going through. i am also a canadian trying to get a custom setting made and i also looked into getting it made by WF but i am currently working with another vendor to find the stone.

jewelers mutual will insure a loose stone but insurance is not yet available to canadians. even though the stone will be in the us, they only provide insurance to those that have an address in the us. they are planning to offer insurance to canadians though early in the new year. to insure a loose stone for the setting process, they ask for an appraisal of the loose stone and a description of the setting you would like to put it in.

i tried exploring a couple options like finding standalone insurance (since i also don''t own a home) but that didn''t work, i couldn''t find anything. i asked if WF could make the setting and send it to my stone vendor to have them set it but their policy is that they must set every stone in their custom settings.

if you are deadset on WF making the setting, you could consider having the stone set in a cheap temporary setting for now and waiting until jewelers mutual is available to canadians to have it set in its permanent setting. however, if you need the ring soon, this won''t work. this is one of the two options i''m considering since i don''t need the ring right away. i would be very nervous about wearing an uninsured ring though so i would put the ring in a safety deposit box at the bank until i can get it insured. (renting a small box costs $40/year)

the other option i am considering is having my stone vendor make a custom setting for me. have you asked if your stone vendor will make a setting for you? that way you don''t have to worry about finding insurance. not sure who you bought the stone from but i''m working with GOG to find a stone and they do make custom settings. it might be worth looking into.

good luck on your custom setting quest, and come back and let us know what you decide to do. i bet there are plenty of other canadians here that are going through the same thing.

on a side note: does uw stand for university of waterloo??

 

[uwphysmed]

Just to put a cap on this should anyone be in a similar situation in the future and find this thread: Brian Gavin Diamonds (BGD) has a very accommodating policy regarding what will happen should a stone be damaged during setting. Lesley is very good at calming stretched nerves over the phone, and I''m looking forward to posting some BGD CAD''s in a couple weeks once things arrive in TX.

Thanks PS!