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Question Re: Traveller''s Insurance

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classc1

Rough_Rock
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Hi,

I just purchased insurance for my new e-ring via a jewelry rider to my Homeowner''s policy. While they asked me the Color, Clarity and carat size, they did not require an appraisal. They told me that I would be cut a check for the replacement value should something happen to the ring. I am having the appraisal done tomorrow. They said that I could send a copy of the appraisal for their files as well as the GIA certificate, but that it was not required. The rep stated that at the time of a loss, they would look at an appraisal then. Does that sound right? Any down side to me sending a copy of the appraisal and GIA certificate now? Thanks.
 

Regular Guy

Ideal_Rock
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I take it the reference ring is here.

I don''t know if there is a communication problem on the part of your agent, or if the appraisal is genuinely irrelevant. The latter should mean that their formula is to provide some fraction of what you paid...which may be the case. Regardless, some insurers...including one you may choose to use in the future, will guarantee you at least a replacement of like kind. In this case, if you do value the performance of your diamond...the way it looks...I''d make sure your appraiser does what they can to help you establish this. For example, BN called this option ideal. Documenting that in some way, that will allow you to ask for the same, will help you get the same...at least for some insurers.

Review with your appraiser. They are supposed to know this stuff.
 

classc1

Rough_Rock
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Date: 9/22/2009 8:03:58 PM
Author: Regular Guy
I take it the reference ring is here.

I don''t know if there is a communication problem on the part of your agent, or if the appraisal is genuinely irrelevant. The latter should mean that their formula is to provide some fraction of what you paid...which may be the case. Regardless, some insurers...including one you may choose to use in the future, will guarantee you at least a replacement of like kind. In this case, if you do value the performance of your diamond...the way it looks...I''d make sure your appraiser does what they can to help you establish this. For example, BN called this option ideal. Documenting that in some way, that will allow you to ask for the same, will help you get the same...at least for some insurers.

Review with your appraiser. They are supposed to know this stuff.
Hi,

That is not my ring in the link you posted. Also, the policy provides for replacement value..supposedly as set by an appraisal if available. I say supposedly because I do not have a copy of the policy in hand yet. The appraiser is supposed to do two things for me...he is supposed to confirm that the stone sold to me is the same stone as reported in the GIA report and he is supposed to for insurance purposes provide the amount of money it would cost to replace my stone...at least that is what I gathered from my talk with him. I just thought it odd that they would not want proof now of it''s value.
 

denverappraiser

Ideal_Rock
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When you read the policy, be very attentive to the definition of the term ‘replacement value’, if it’s even used. They may not mean the amount that your appraisal calls replacement value but rather the amount that their jeweler says it will cost them to replace it with another of like kind and quality based on the information in the description. These are very different concepts and the later is distinctly more common.

Assuming the later is the case, they are not agreeing that the value is what your appraisal says, they are agreeing to replace it for that amount or less, based on the description that YOU are providing.

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

andex23

Rough_Rock
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When I contacted my insurance agent (State Farm) who put a personal articles policy in place they needed not only to see the actual ring...took photos with their own camera to prove that I brought it in to the office and that I actually had it in my possession, but they also took copies of my GIA report and copies of photos that WF had sent with the ring to document it. (Their camera was worse than awful, but it was proof that they saw it in their office.)

Further, I had to bring in the bill of sale from WF to prove that we had actually legitimately purchased the ring and didn''t "find" it somewhere. With the purchase, WF had also sent an appraisal of sorts which State Farm had copied and put in the file as well. State Farm is insuring me for the appraised amount that was written on the paper that WF had sent, not the invoice price of the ring.

I don''t know if all this documentation was for my benefit or State Farm''s benefit, but both FI and I feel better that if, heaven forbid, it were to get stolen, lost, or thrown down the garbage disposal, we would have a new diamond coming our way. I made sure that the description of the ring not only included details about how many diamonds are around the shank, but also that it''s a H+A diamond, etc... I don''t want someone who isn''t as familiar with diamonds telling me that any ''ole diamond is as fancy as a PS-educated diamond.

I don''t know if this helps you, but I would recommend having the appraisal done sooner rather than later. How can someone tell you what it is worth if you don''t have it to show it to them?
 

Regular Guy

Ideal_Rock
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5,962
Ditto Neil''s comments.

This is the ring, right? Sorry.

They bound the existing policy based on the amount paid I take it? I believe the appraiser will come up with a number setting an upper limit on what they''d pay, I believe. I AM confused by the fact that you already have the policy. Seems like if they''ll pay the upper limit of the appraisal amount, what you have insured it at must reflect this.

Regardless...even though color, clarity & carat are what they''ve noted to be documented, as I said before, do ask your appraiser to try to document cut characteristics as well. Probably, in the case of the need of using insurance...what you really will want to do is replace with like kind. His careful description will help insure this is possible, even though your insurer may not be concerned about this other aspect.
 

classc1

Rough_Rock
Joined
Sep 16, 2009
Messages
48

Denverappraiser-I will read the terms carefully...I do not get a copy of the policy for another day or so....


Andex...the process that you went through was closer to what I thought would happen in order to have my ring insured. This is why I am asking this question. It just seems really odd to me. One thing I should mention is that technically, I got the policy through Geico. I contacted Geico for the policy but it seems that they do not do homeowner''s policies in NY. As such, they sell Liberty Mutual and Traveller''s policies. I was not eligible for Liberty Mutual as they will not do a jewelry rider unless you already have an existing HO''s policy in place. I did not so the Geico rep stated that I would have to get Traveller''s. Perhaps Geico is not that careful because they are not the one''s who have to foot the bill here. In any case, I intend to send in as much documentation as possible to document my purchase.


Regular Guy...thanks for your help..yes...that is my ring. I will take your great advice and ask the appraiser to document as many cut characteristics as possible...with the exception of that crown/pavillion angle issue. LOL He can leave THAT out!!


Essentially what happened is this...I told the agent that I was awaiting an appraisal. She asked me how much was the ring worth approximately. Knowing that appraisals are usually higher than the actual cost, I gave her an amount that I believe was well above the amount for which I purchased the ring. Of course...I know that I am paying more as a result. The agent however told me that I could adjust it upward or downward once the appraisal came in.
 
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