Questions on insurance, appraisals, and appraiser referrals

[Erion929]

At the tender age of 57 (in two days), I just purchased an engagement ring for the first time in my life. NEVER thought I would do this, and, yeah, I had sweaty palms right up until I clicked "Order" . I researched diamonds/rings for a month...ended up buying a setting and an ACA cut from Whiteflash.

Some newbie questions:

-- Thinking about buying insurance from somewhere like Jewelers Mutual (since I see that name the most on Pricescope, I guess). I have read that usually appraisals are for ~20-50% more than cost, and I have read the various reasons....most of which are insurance company advantages in higher premiums. Do I ask for a "Replacement Cost" appraisal instead of a "Retail Cost" appraisal....is that how you approach it? Do appraisers work with you on that request, or do they not make that differentiation?

-- Or would JM allow me to just use my Whiteflash diamond ring receipt and AGS certificate to establish value?

-- Any appraiser referrals in So. Orange County, CA. ? Should I, or do I get to, watch/be in the room? How much should I pay for a basic appraisal in Southern California?

-- You can see how clueless I am and where I'm going with these questions...feel free to throw in any other advice, much appreciated!!

 

[oldminer]

Re: Questions on insurance, appraisals, and appraiser referr

http://www.indepthappraisals.com/feeschedule.html This is a very competent and well qualified appraiser in your region. Her prices are on this link and you should review her website for some of the other details. I am sure she can do what you need done while you watch.

If nothing else, this website alone will answer many of your questions.

 

[Erion929]

Re: Questions on insurance, appraisals, and appraiser referr

Thanks Oldminer...that helps some on pricing and types of appraisals, although she is too far for me to get to.



Also, what is the "normal" way to view an appraisal for the BUYER? After buying an ACA stone from an apparently reputable seller like Whiteflash, is getting an immediate appraisal: mandatory, recommended, of marginal value, or a waste of money?

 

[WinkHPD]

Re: Questions on insurance, appraisals, and appraiser referr

I may be mistaken, but I believe that WhiteFlash will provide you with a document that you can submit to your insurance company or to Jewelers Mutual at no cost to you for the document. JM is an excellent company, and they will only replace the diamond, not write you a check, so we jewelers LOVE them. They respect the branded diamonds and never try anything hinky to save themselves a few bucks.

Since WhiteFlash is a trusted vendor you can be relatively comfortable with that, although if you wish to have an independent appraiser take a look at the finished piece, they will not have any problems with you doing so.

It is more a matter of what are you comfortable with. I can not remember exactly how many people have asked me to send a diamond to an appraiser but it is very low, certainly less than ten in the past five years. Neil probably knows better than I do since all but one of them went to him.

If you do use an appraiser, make sure he/she is a competent one. Don't get an appraisal for 50% more or 100% or 400% (like at Costco with their ridiculous IGI trash papers, oh wait, I probably am being disrespectful to call them trash papers, let's just call them "papers of questionable value.") When it comes time for the insurance company to write the check, they will ONLY write it for the amount it would cost them to buy a diamond "of like kind and quality".

Thus it is very important if you have a diamond that is branded, such as the ACA from WhiteFlash that the appraisal identify it as such. It should be at or close to what you paid unless there was a good reason that you paid less than current replacement cost. (If you are buying from an estate, or a distress sale from a private for example.) If you hear prices are going up, get your diamond appraisal updated. If you do not hear this, you probably should still get it updated at least every two years. This will do two things, it will assure you that your diamond is not damaged in any way, as it will need to be inspected for the update, and it will insure that you do not under insure your treasure since you are probably not following the diamond market, unless you become addicted like many of us here.

Just my thoughts on this smokey Saturday afternoon in Boise.

Wink

 

[hawk25]

Re: Questions on insurance, appraisals, and appraiser referr

I recently insured a engagement ring from WF through JM (Perfect Circle), so I thought I'd chime in. A few days after my order was put through, I received a marketing email from WF detailing insurance through JM. They have a partnership where you can put your order # in and it'll automatically show WF's automatically generated appraised value, which for me was just an additional 30% of the purchase price. Here's the link where you put your order #

https://my.perfectcircleinsurance.com/Apply/Express/Provider/Whiteflash

I didn't want to insure it for 30% more, rather I wanted it lowered to 15%. JM allowed me to submit my invoice from WF as the 'appraisal', and I had to write a note saying I wanted to change the insured value (it can't be lower than the invoice price). They also suggested I upload the AGS cert on their website when I got it (I hadn't got the ring yet).

The advice I got from WF wasn't completely accurate. They said that when you're registering online there's a spot where you can change the insured value from the automatic appraised value, but I couldn't do so online, the field was greyed out. I had to insure the ring with the appraised value, and then write a note saying I wanted it lowered to a specific amount, and sent it with the copy of the invoice.

I've been going back and forth on whether or not I'll get a third party appraisal. JM has my invoice, so it's stated that it's a WF ACA stone and a 5% ruthenium casting of my setting. I think that's enough in case I need to make a claim. But whether it's worth an appraisal for my own piece of mind... I haven't decided yet

 

[Erion929]

Re: Questions on insurance, appraisals, and appraiser referr

Ok, thanks Wink and Hawk

Yes, I finally got both JM and Whiteflash responses....I can simply use the Whiteflash invoice and AGS certificate, run it through that link to JM and get a quote without getting an appraisal done.

I think I will also try to lower the replacement value/premium if they will allow. I don't really care about every dollar, just some peace of mind in case she loses it

I'll have to wait til I see the stone/ring before I decide to get an appraisal or not. I'd probably try to check it through a loupe or sumpin' and if it "looks sweet" I'll just trust WF, lol.