Price increases and "underinsured" status

[Lula]

The recent discussion on the price increase thread about the rapid increase in prices affecting insurance coverage inspired me to do a search for stones similar to my 0.78 G VS1 RB -- purchased in January 2011 -- and I found I am underinsured by about 20%! My stone is a branded cut that would sell at a premium, but even the prices of non-branded stones are higher than what I paid.

The price discrepancy between GIA Ex stones and EGL stones is striking -- I guess my search confirms our suspicions about the reasons behind the sudden popularity of and questions about EGL stones on PS.

Plus, I was shocked to see how little inventory, especially in the AGS0 category, there is in 3/4 carat stones with similar color and clarity. What does this mean in terms of how easy/difficult it would be to replace a stone comparable to mine, should (perish the thought) that need arise?

I'll be emailing Wink today about a new appraisal -- hard to believe, since it's only been six months since I bought the stone.

I'm posting this to encourage all of you to check the specs of your current stone against the PS database to see if you, too, need an insurance "tune-up." And, no, I don't work in the insurance industry, ha-ha.

 

[Karl_K]

Thank you Lula,
Even the people like me that go cost + 30% for a buffer are reaching the point they are close if not already under insured even on some stones purchased 6 months ago.

 

[Amys Bling]

It really is crazy!!!!

 

[diamondseeker2006]

I don't consider the price discrepancy between GIA and EGL striking considering the post the other day that showed EGL grading 2 ot 4 color grades off of GIA. In fact, that post showed that the actual cost would be greater on the EGL stones for what you were actually getting.

But you are right that people may want to check their insurance. Chubb allows you to increase coverage periodically without an appraisal which I have really appreciated!

 

[denverappraiser]

Keeping current on your appraisal is an important step in being fully insured. If you don't know where you stand, call your appraiser.
The last few years have seen BIG changes in both diamonds and metals.

 

[WinkHPD]

Keep in mind also that a reputable appraiser is NOT going to just send you a new piece of paper. He MUST actually see the piece to confirm that there has been no damage to the item, if he sends out a new price with a new paper without seeing the item he is exposing himself to legal problems and if it is discovered the insurance company might have a case to deny coverage.

When dealing with your insurance, ALWAYS PLAY BY THE RULES! Playing by the rules protects you, skirting them is a good way to cost yourself a LOT of money in the long run.

Neil can elucidate these issues better than I can.

Wink

 

[WinkHPD]

The recent discussion on the price increase thread about the rapid increase in prices affecting insurance coverage inspired me to do a search for stones similar to my 0.78 G VS1 RB -- purchased in January 2011 -- and I found I am underinsured by about 20%! My stone is a branded cut that would sell at a premium, but even the prices of non-branded stones are higher than what I paid.

The price discrepancy between GIA Ex stones and EGL stones is striking -- I guess my search confirms our suspicions about the reasons behind the sudden popularity of and questions about EGL stones on PS.

Plus, I was shocked to see how little inventory, especially in the AGS0 category, there is in 3/4 carat stones with similar color and clarity. What does this mean in terms of how easy/difficult it would be to replace a stone comparable to mine, should (perish the thought) that need arise?

I'll be emailing Wink today about a new appraisal -- hard to believe, since it's only been six months since I bought the stone.

I'm posting this to encourage all of you to check the specs of your current stone against the PS database to see if you, too, need an insurance "tune-up." And, no, I don't work in the insurance industry, ha-ha.

I got your email and I have sent you a private response which you may share or not as you see fit.

What absolutely floored me was that your Crafted by Infinity Diamond, by my calculations, has gone up 27.8% since you bought it near the end of January. That is hard for me to fathom and I remember that at the time you bought your diamond people were angry with Paul Slegers of Infinity Diamonds for saying that he thought there might be a ten to fifteen % price increase this year. LOL, I guess now they should be angry with him for not advising them that they were going to go up nearly 30% in just the next five months. Even he might have thought he was insane if he had said THAT!

Wink

 

[Dreamer_D]

Lula I had close to a 40% buffer for my ring, and I am very close to reaching that only 1 year after purchase. Good reminder for consumers!

I am hoping to wait for my reset to get another appraisal. As of now, I am ok with the value for replacement, but if prices hike again...

 

[Dreamer_D]

I take it back. I just checked the most recent prices on BGD signature H&A stones and my diamond has officially risen in value by 50% to a price that is above the insured value by a significant amount. I guess I need to reappraise it

 

[Christina...]

I've only had my diamond for a few weeks, and had been waiting for prices to level out before adding it to my current policy, as I understand that I can only adjust once a year(?). I know that this is VERY risky! Any advice for me though? (other than to insure it immediatly lol) Should I go cost plus 30%? After reading all of your posts that doesn't even sound like enough. I'm so happy that we bought when we did!

 

[Lula]

I take it back. I just checked the most recent prices on BGD signature H&A stones and my diamond has officially risen in value by 50% to a price that is above the insured value by a significant amount. I guess I need to reappraise it

That is astounding -- it's only been a year!! I'm so happy for you that you upgraded when you did. I guess that makes the hassle of getting your diamond reappraised a little less painful.

 

[Lula]

Thank you Lula,
Even the people like me that go cost + 30% for a buffer are reaching the point they are close if not already under insured even on some stones purchased 6 months ago.

You're welcome, Karl. It looks like a lot of us are in this boat! Appraisers and insurance companies are going to be busy, lol.

 

[Lula]

The recent discussion on the price increase thread about the rapid increase in prices affecting insurance coverage inspired me to do a search for stones similar to my 0.78 G VS1 RB -- purchased in January 2011 -- and I found I am underinsured by about 20%! My stone is a branded cut that would sell at a premium, but even the prices of non-branded stones are higher than what I paid.

The price discrepancy between GIA Ex stones and EGL stones is striking -- I guess my search confirms our suspicions about the reasons behind the sudden popularity of and questions about EGL stones on PS.

Plus, I was shocked to see how little inventory, especially in the AGS0 category, there is in 3/4 carat stones with similar color and clarity. What does this mean in terms of how easy/difficult it would be to replace a stone comparable to mine, should (perish the thought) that need arise?

I'll be emailing Wink today about a new appraisal -- hard to believe, since it's only been six months since I bought the stone.

I'm posting this to encourage all of you to check the specs of your current stone against the PS database to see if you, too, need an insurance "tune-up." And, no, I don't work in the insurance industry, ha-ha.

I got your email and I have sent you a private response which you may share or not as you see fit.

What absolutely floored me was that your Crafted by Infinity Diamond, by my calculations, has gone up 27.8% since you bought it near the end of January. That is hard for me to fathom and I remember that at the time you bought your diamond people were angry with Paul Slegers of Infinity Diamonds for saying that he thought there might be a ten to fifteen % price increase this year. LOL, I guess now they should be angry with him for not advising them that they were going to go up nearly 30% in just the next five months. Even he might have thought he was insane if he had said THAT!

Wink

Thanks, Wink. Yes, my diamond will be winging its way across the country to you for a re-appraisal. I must admit I was shocked to see the 27.8% increase in your reply to my e-mail. As you mentioned, I bought this stone in January. I checked the PS database on a whim, just out of curiosity, but you better believe I'm going to pay more attention to these price increases, because, it's painfully clear price increases affect all of us who own diamonds, not just new customers or customers looking to upgrade. Yikes!

 

[Lula]

I've only had my diamond for a few weeks, and had been waiting for prices to level out before adding it to my current policy, as I understand that I can only adjust once a year(?). I know that this is VERY risky! Any advice for me though? (other than to insure it immediatly lol) Should I go cost plus 30%? After reading all of your posts that doesn't even sound like enough. I'm so happy that we bought when we did!

Have you had your ring appraised yet?

 

[Lula]

I don't consider the price discrepancy between GIA and EGL striking considering the post the other day that showed EGL grading 2 ot 4 color grades off of GIA. In fact, that post showed that the actual cost would be greater on the EGL stones for what you were actually getting.

But you are right that people may want to check their insurance. Chubb allows you to increase coverage periodically without an appraisal which I have really appreciated!

You are absolutely right, DS, comparing the cut/color/clarity of EGL and GIA graded diamonds is not a fair comparison, because they don't use the same standards. So indeed people think they're getting a "deal" on EGL when usually they are paying more, as you note. But newbies just looking at the database, who are trying to get around the recent price increases may be "seduced" by EGL's lower prices if they don't do their due diligence.

 

[Christina...]

I've only had my diamond for a few weeks, and had been waiting for prices to level out before adding it to my current policy, as I understand that I can only adjust once a year(?). I know that this is VERY risky! Any advice for me though? (other than to insure it immediatly lol) Should I go cost plus 30%? After reading all of your posts that doesn't even sound like enough. I'm so happy that we bought when we did!

Have you had your ring appraised yet?

I do have an appraisal that was done on the stone in March, but I haven't had one (other than the appraisal done by the vendor) since I've reset the stone in May.

 

[Dancing Fire]

i can't afford the insurance...

 

[WinkHPD]

i can't afford the insurance...

Insurance depends on many things, where you live and the value of the item being insured.

But seriously, at 1% to 5% of value, can you afford NOT to have insurance? If you can not afford this small portion of the value, how will you ever replace the item if it is lost or stolen?

Wink

 

[Modified Brilliant]

Keep in mind also that a reputable appraiser is NOT going to just send you a new piece of paper. He MUST actually see the piece to confirm that there has been no damage to the item, if he sends out a new price with a new paper without seeing the item he is exposing himself to legal problems and if it is discovered the insurance company might have a case to deny coverage.

When dealing with your insurance, ALWAYS PLAY BY THE RULES! Playing by the rules protects you, skirting them is a good way to cost yourself a LOT of money in the long run.

Neil can elucidate these issues better than I can.

Wink

Yes...it IS important to see the item again. It's also a good opportunity to have your prongs professionally checked and your ring cleaned as well as pointing out any preventive maintenance.

 

[Dancing Fire]

i can't afford the insurance...

Insurance depends on many things, where you live and the value of the item being insured.

But seriously, at 1% to 5% of value, can you afford NOT to have insurance? If you can not afford this small portion of the value, how will you ever replace the item if it is lost or stolen?

Wink

the last time i check it cost $2.20 per $10k,but where do i draw the line, just insure her Ering and 5 stone ring? how about her bracelets,pendant,etc,etc..?? ..i'd go broke after paying the insurance premium for 5 yrs..

 

[Christina...]

i can't afford the insurance...

Insurance depends on many things, where you live and the value of the item being insured.

But seriously, at 1% to 5% of value, can you afford NOT to have insurance? If you can not afford this small portion of the value, how will you ever replace the item if it is lost or stolen?

Wink

the last time i check it cost $2.20 per $10k,but where do i draw the line, just insure her Ering and 5 stone ring? how about her bracelets,pendant,etc,etc..?? ..i'd go broke after paying the insurance premium for 5 yrs..

I would love such a problem!! I'm !

 

[Dancing Fire]

had lunch with an insurance agent today,he said...$750 to cover $10K worth of jewelry..

 

[Lisa Loves Shiny]

had lunch with an insurance agent today,he said...$750 to cover $10K worth of jewelry..

Wow! I have a rider on my home insurance to cover my jewelry. $120 per $10K.