Seeking help of appraisers

[pfunk]

I had a topic awhile back on this same subject, but at the time my appraisal wasn't completely finished (he had only inspected the loose diamond) and I hadn't had a chance to discuss it yet with the appraiser. Now the entire ring has been appraised and we had a chance to discuss it. I still feel like I have some concerns about how to proceed for insurance purposes.

The appraiser inspected the loose stone and was quite confident in calling it an I color diamond, despite the fact that GIA called it a J. He did not want to see the GIA report until after he had finished his inspection, and when I told him it was GIA J he responded that he was sticking with his assessment of I color. His replacement cost is therefore based off an I color diamond even though that is not what I paid for.

Also, he does not submit the GIA report as part of his appraisal. His appraisal included a detailed description of the ring and accent diamonds along with a description and clarity plot of the center stone. Everything closely matches the GIA report (small differences in dimensions and angles) and he also included the AGA/NAJA Cut class score which was a 1A.

I asked him about the discrepancy in color and the small differences in measurements and his response was that there are allowable tolerances and these small differences are well within human grading norms and cut parameters. What is important is that there are no large differences and that my diamond definitely matches the GIA report.

My concerns are:

1: I do not want to use his appraised value as it is came out to be about 150% of what I truly paid for the entire piece. Am I better off sending in sales receipts and asking the insurer if I can set the covered value somewhere in between to give me a bit of a cushion?

2: If I ever need to replace it, is it a big deal that the GIA report is not included on my appraisal? Will I end up getting a diamond graded by someone other than GIA? The only mention of GIA in the appraisal is that it has a GIA inscription on the girdle #xxxxxxxxxx.

3: Is the I vs J color a big deal that I should be concerned about?

If it matters, I will be going through Jeweler's Mutual. Thanks for any advice you may have!

 

[denverappraiser]

1) The value conclusion on an insurance type appraisal is usually an estimate what you could expect it to cost to replace the item with another of like kind and quality, new, at retail, locally. I won't venture to guess if they correctly answered that question but if you think they're wrong, call them up, explain why and discuss it. The fact that you bought it cheaper in a different market doesn't really change this but it's definitely relevant to the decision.

2) Yes, the GIA report still matters, and the girdle inscription most definitely brings it in, whether they send a copy or not. What JM replaces with is a matter between you and them but I would expect it to be with a J that otherwise meets or exceeds the GIA specs. That is to say, I would expect the GIA grade to take precedence over the appraisers grade.

3) See answer to 2 above.

 

[Texas Leaguer]

I'm sure that if you speak with Jewelers Mutual they will confirm what Neil said. If you feel the valuation is inflated (that it will make premiums unnecessarily high) then I am sure you can have that discussion with the appraiser and possibly get a revision. Asking them to lower their estimate is not the ethical problem that asking them to increase it would be, particularly in light of the appraiser's color call.

On the grading issue, I find it curious that the appraiser would intentionally omit from his document the GIA report. I can see them wanting to do the grading independently, but at the point that a GIA report is known to exist and the stone is verified to match, why would you not include that important documentation?

Especially with regard to color grading, and particularly if the diamond is set at the time of appraisal, it's hard to understand how ANY appraiser can consider themselves better equipped for accuracy than the GIA with it's multiple sets of masters, proprietary colorimeters, redundant grading practices etc. The appraiser is correct that the one grade variance is within accepted tolerances, but it just seems a little stuffy that he would dismiss the GIA report. To me a better approach for the benefit and protection of the insured would be to acknowledge the GIA report with a notation to the effect that color was found by the appraiser to be in the I-J range.

 

[pfunk]

Thank you Neil and Bryan. The help is much appreciated. I will have a discussion with JM and the appraiser and figure out what the best plan of action is for me. I also don't see the point in being persistent on the color grade despite knowing that GIA called it a J. I understand he has a job to do regarding independently assessing the stone, but he must know that GIA's report will be an important factor if it comes time to replace the piece. I am hopeful that JM will let me insure it at a lower value than it was appraised at, as I don't want to be paying unnecessarily high premiums. I certainly won't get an I color stone as a replacement even though the appraiser called it an I, so why pay for that. It's all just confusing to me as a consumer because you don't really know what matters in the end. If you have a GIA graded stone how much power does the appraiser's opinion really have in the end? Are they going to care the appraiser called it an I-J if GIA calls it a J? What matters more, GIA report or appraisal? Hopefully JM can answer some of these questions for me. Thanks again guys.

 

[Texas Leaguer]

Thank you Neil and Bryan. The help is much appreciated. I will have a discussion with JM and the appraiser and figure out what the best plan of action is for me. I also don't see the point in being persistent on the color grade despite knowing that GIA called it a J. I understand he has a job to do regarding independently assessing the stone, but he must know that GIA's report will be an important factor if it comes time to replace the piece. I am hopeful that JM will let me insure it at a lower value than it was appraised at, as I don't want to be paying unnecessarily high premiums. I certainly won't get an I color stone as a replacement even though the appraiser called it an I, so why pay for that. It's all just confusing to me as a consumer because you don't really know what matters in the end. If you have a GIA graded stone how much power does the appraiser's opinion really have in the end? Are they going to care the appraiser called it an I-J if GIA calls it a J? What matters more, GIA report or appraisal? Hopefully JM can answer some of these questions for me. Thanks again guys.

I think you will get a straightforward answer from JM. The simplest thing is probably just to have the appraiser amend the appraisal to include the GIA document and re-assess the valuation accordingly. I can't imagine the appraiser being unwilling to do that.

 

[mns12]

I recently used JM to insure my new diamond and eternity band. I just provided the receipts/invoices from Whiteflash and that was all I needed. So it is currently insured for the value I paid. Shortly after I had the diamond appraised and D. Atlas put the appraisal value a little higher than what I paid (not knowing what I paid). Once I told him what I paid he recommended to leave the value as is. I believe the reasoning is that should their be a loss, and should prices go up, I have a small cushion. From what I understand the value on the appraisal is the absolute highest they will use when considering the replacement of your jewelry. For the extra $2-3k the added premium is only about $30/year.

 

[Modified Brilliant]

I always include a copy of the GIA report with an appraisal because all the technical information is pertinent. I may sometimes not 100% agree with the grading but will explain my reasons to the client. The report and all of its contents are important and should be included in the appraisal.

 

[ponyrider]

Modified Brilliant.....not to highjack this thread, but if I have two diamond rings (neither worth very much money) that I am curious about, is it worth it to make an appointment with you to have them appraised? It would be for insurance purposes, but also for my own curiosity. I am in Central Mass, but could easily get to your Sudbury location. Is this something I should call your office about?

Thanks

 

[VRBeauty]

Modified Brilliant.....not to highjack this thread, but if I have two diamond rings (neither worth very much money) that I am curious about, is it worth it to make an appointment with you to have them appraised? It would be for insurance purposes, but also for my own curiosity. I am in Central Mass, but could easily get to your Sudbury location. Is this something I should call your office about?

Thanks

Trade members aren't allowed to solicit business - perhaps it would be best if you contact MB directly off the forum.

 

[ponyrider]

Thank you... I was not aware