Need advice on appraisal/insurance etc.

[SBee]

We''re currently trying to find a local jeweler to replace the tiny missing stone in my engagement ring (only 1 week old!)...can anyone tell me what the proper order of doing things would be: appraisal, insurance, and the repair. Should we get the repair done first? Or the appraisal, so that we can insure it before the repair? The same jeweler would probably be providing both services.

 

[diamondseeker2006]

Have him repair the ring and do the insurance valuation with the ring repaired.

 

[denverappraiser]

One of the primary purposes of the appraisal is to provide a description of what you have that can then be used as a benchmark for replacement in the case of a loss. On X date, which is usually the date of the appraisal and is usually immediately before the start of the policy, this is what it looked like and this is they condition they are agreeing to return you to in the case of a loss.

For insurance purposes, defining it as defective is setting yourself up for replacement with a defective ring! Obviously this is not your intention, nor is it likely to be the intention of your insurance company so the sensible thing to do is to get it fixed first, then appraised.

There are other situations where the order would be changed. If the concern were, for example, to identify or document a craftsmanship problem on a recently purchase item, it’s better to get the inspection before the repair is done because there are some liability issues that come into play. ‘Repaired’ is not the same as ‘new’ in all cases and the difference can be important. If the damage being repaired is part of an insured loss, your carrier may want you to get a professional appraisal to document the damages and to recommend specific repair requirements. Your adjuster should tell you if this is the case and the appraisal fee would become part of the damages as well.

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