Questions about independent appraisals for a new purchase

[sapx2]

Hello,

I purchased a ring from Cartier recently, and I picked it up on Saturday from their Boston store (the loose diamond needed to be set). In addition to the GIA grading report, I was also given a Cartier Certification of Value signed by the sales rep and diamond manager (i think). This, along with my receipt and the GIA report was all that I needed for my insurance company (MetLife), but should I also get the ring independently appraised? My policy is a $0 deductible cash replacement policy (meaning that if there is any loss, I will receive a check for the current value of the ring). In addition, if I get the ring re-appraised at any time and find that the value is higher, I can submit that appraisal and increase the payout I would receive, if there was a loss.

I guess my main question is... should I get the ring appraised now, or wait a few years and get it re-appraised to see if there is a value increase?

Thanks in advance for your help!

 

[denverappraiser]

With a new purchase of a branded item like Cartier where it’s easy to define exactly what you have, and with a cash out policy, I think you are well covered using what you’ve got unless you worry that the store has somehow misrepresented something.

Who is the insurance company? What state are you in?

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

 

[sapx2]

Hi Neil,

Thanks for the quick reply. I''m not concerned with Cartier misrepresenting the stone at all. My insurance company is MetLife, and I am in Massachusetts. The cost is $12 per thousand. The ring cost just under $9K, so the premium is around $108 per year. In your opinion, is this a good way to go, or am I better off with Jewelers Mutual or Chubb?

Also, if I were to get the ring re-appraised in a few years, how much would the Cartier brand come into play in terms of valuation? For example, if a ring with the same specs as mine will cost $3K more in 3 years, would an appraisal at that time reflect that new purchase price?

Thanks for your help!

 

[denverappraiser]

That sounds marvelous, especially if you’re in Boston or the surrounding areas where the risks seem to be a little higher. Out here, I don't think MetLife offers a cash type policy. Are you sure about this? I would be surprised if Chubb comes close to that price and if it's truly a cash policy with a $0 deductible then it's better coverage than JM offers(and possibly a lower price as well).

Replacement of a Cartier piece with a non-Cartier substitute is not ‘like kind and quality’. The pre-loss insurance valuation question is usually estimating what it will cost to replace with a comparable new item and, since the only place you can get NEW Cartier is at Cartier, the question really is what will they reasonably be expected to charge. Whether your appraiser understands this depends on the appraiser you choose. They are not equally qualified and there are quite a few out there (the majority actually) who have no training AT ALL in this.

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

 

[oldminer]

Like Neil says, you are in great shape. If everyone was in your position, Neil and I would be doing some other work..... And I really sort of like what I do now.

 

[sapx2]

It did kinda sound too good to be true, but that is what the rep on the phone told me. I will receive the actual policy info in a few days, and report back what I find. The only part of it that I don''t like is that they will pay cash to me for the most recent appraised value they have on file... so if I were incur a loss prior to any re-appraisal, I would only receive the $9K that I bought it and insured it for (regardless of the actual replacement cost). However, getting it re-appraised every 3-4 years should mitigate this risk a little bit.

Thank you both for your input... it is greatly appreciated!