Recut Insurance 25k or 33k

[xxxxxx]

I purchased a diamond (33k) to be recut. ( I know this is something nobody would recommend here)

My cutter can insure the diamond during the recut process for 25k for 1500usd. Anything over 25k insurance coverage needs to be sent to the insurance company for inspection.
Should I just be do it fast and easy and insure my diamond for 25k or should I go the extra mile to get the whole 33k coverage?
I’m really not sure as I’m almost scared they would reject to insure it if I send it in (not that it’s a bad recut candidate - just not sure why they want to inspect it?).

 

[winnietucker]

I’d insure for the full value if you can. $8k is a large difference.

 

[OoohShiny]

$1500 insurance seems a lot!

But then I'm not an insurance specialist so it might be a totally normal, fair amount for what is a potentially risky procedure with potential total loss.

Have you seen the T&Cs of the insurance?

 

[xxxxxx]

$1500 insurance seems a lot!

But then I'm not an insurance specialist so it might be a totally normal, fair amount for what is a potentially risky procedure with potential total loss.

Have you seen the T&Cs of the insurance?

I haven’t read the T&C yet. But I asked very clearly if I will get 25k payed out if the diamond breaks on the cutting wheel. Which was confirmed. Maybe I’m too trusting? But the cutter is a pricescope trusted vendor with several happy customers.

 

[denverappraiser]

Are you recutting it because it's damaged or just because you want to improve the cutting? It makes a big difference in the way you insure things. Is it currently mounted?

 

[xxxxxx]

Are you recutting it because it's damaged or just because you want to improve the cutting? It makes a big difference in the way you insure things. Is it currently mounted?

Because I want to improve the cutting. It is a SI1 But the cutter said he doesn’t see any greater risks than with a VS1 for example. It is a loose in mounted diamond.

 

[diamondseeker2006]

What will it be worth after it is cut? Will it be worth less than $33k because it is smaller? Or will it gain value because of the cut?

I'd personally go with $25K for $1500 because there is very little risk and I wouldn't want to add more than $1500 to the cost of the stone and cutting fee. You'd have $34,500 in it before paying the cutting fee.

 

[denverappraiser]

If it's undamaged and currently mounted, most insurance companies will bind a policy. Most of those policies include coverage during repairs and retstyling. That is to say, if you already have a policy, damage during recutting may be a covered loss. Buying a policy now will cost you about 1% of your declared value, which means about $300, not $1500. That leaves plenty of room to set it in something if you must. Ask. Call your agent and/or the underwriters. This question is deep into the fine print of the insurance policy and they don't all work the same. They don't even all work the same from the same company in different states.

The problem with all of this is deciding what is damage on the wheel. If the results are less than you expected, is that damage? What's the threshold? What does the cutter guarantee for that $1500?

 

[diamondseeker2006]

I was just thinking before Neil posted how much less it would be to just insure it the regular way, but I see it is a loose stone. It would still be cheaper to set it in the cheapest possible solitaire, insure it, and then send the ring to the cutter.

 

[xxxxxx]

Thank you all for this sound advice. Unfortunately I’m located in Germany and getting personal insurance is out of the question as I don’t think an insurance company would let me get insurance as an expat. So I need the cutter to handle the details. German insurance companies often don’t even have a extra jewelry insurance and would most likely exclude any damage caused by recutting.

This whole project is a passion project and definitely not an investment.