Slightly confused about insurance/appraisal/etc

[Stephen5813]

Hey all. I just purchased a .81 H VS2 H&A from GOG, and I am currently working on saving up the coin to send it out to Mark Morrell to get it set (almost there!). It''s locked up in a safe deposit box at the bank, so I''m not worried about it insurance wise. However, should I get a policy before sending it out to mark so it''s insured while he''s working on it? I know he has a disclaimer that he does not insure clients stones while in his possession, but I don''t imagine he''d lose or damage it. It''s got a medium to slightly thick girdle, so chipping shouldn''t be an issue. I wouldn''t normally have a problem getting it insured (just as long as the GF doesn''t accidentally get a notice from our insurance company informing her of a diamond being added to our renters policy). The only thing is that I''m not planning on getting it appraised until after it''s set (I see no reason to doubt the quality given the outstanding reputation of GOG, and its AGS cert). In short, should I worry about something happening while its being set, and if so, do you think I would have to get it appraised once to insure the stone, and then again to insure the stone/setting combo? Thanks a lot! (p.s. My insurance company is American Family in case anyone has dealt with them).

 

[Lorelei]

Date: 1/14/2009 5:23:13 PM
Author:Stephen5813
Hey all. I just purchased a .81 H VS2 H&A from GOG, and I am currently working on saving up the coin to send it out to Mark Morrell to get it set (almost there!). It's locked up in a safe deposit box at the bank, so I'm not worried about it insurance wise. However, should I get a policy before sending it out to mark so it's insured while he's working on it? I know he has a disclaimer that he does not insure clients stones while in his possession, but I don't imagine he'd lose or damage it. It's got a medium to slightly thick girdle, so chipping shouldn't be an issue. I wouldn't normally have a problem getting it insured (just as long as the GF doesn't accidentally get a notice from our insurance company informing her of a diamond being added to our renters policy). The only thing is that I'm not planning on getting it appraised until after it's set (I see no reason to doubt the quality given the outstanding reputation of GOG, and its AGS cert). In short, should I worry about something happening while its being set, and if so, do you think I would have to get it appraised once to insure the stone, and then again to insure the stone/setting combo? Thanks a lot! (p.s. My insurance company is American Family in case anyone has dealt with them).

It is apparently rare that chipping or damage happens but I would get insurance if possible and ask for a policy which covers the diamond while being set. You could get an appraiser to inspect the stone prior to setting to make a note of its condition or get the full appraisal done prior to setting, then just get him to evaluate the ring once completed for a suitable insurance figure, noting details of your MM setting.

Try - www.jewelersmutual.com or www.chubb.com

 

[denverappraiser]

The risk of breakage is low but it’s not zero. Way less than 1%. One perfectly reasonable choice is to just accept the risk. If you’re not inclined to do that and you want to use a jeweler who won’t accept the risk as part of their fee, you really only have one choice. Jewelers Mutual.

American Family is a great company but they do not schedule unmounted stones and the coverage under your general policy is pretty bad. This is typical of all of the large companies, including Chubb. JM has a slightly different program that applies to exactly this situation. They will bind a policy on a ring that still requires assembly. That means you are covered during the setting process. In the case of Mark Morrell it’s pretty simple since he won’t take direct shipments from consumers for similar liability reasons. His risk of being defrauded by a consumer is low but it’s not zero and he REQUIRES you to have it documented prior to him receiving it and then have it shipped to him directly from the appraisers office. Add to this report the advertisement and description of the ring that you are planning on having him put it in and JM will bind the policy. If there’s damage during the setting process, you are then covered along with a standard policy for a year beyond.

If you’re using a setter other than Mark and who will agree to accept a shipment from you it’s even easier. You can use the advertisement for the setting and the paperwork supplied to you by GOG and bind the policy directly with the company.

In both cases you can ‘update’ the policy when it’s complete by submitting your actual appraisal report of the finished item.

As with all insurance topics, your own policy stands on it''s own and they vary from client to client and state to state. That''s what the agents are for. Talk to your agent or the person on the 800# about specific coverage details for the policy you are considering.

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

 

[oldminer]

Mark likes the diamond''s condition to be independently verified before he takes delivery. We often do this in advnce for his clients, as do other appraisers on Pricescope. Once the ring is complete it comes back to me for the final inspecitn and complete appraisal. There is no harm in getting it insured in advance of the ring by Jeweler''s Mutual, but little reason to be overly concerned.

 

[Pandora II]

The chance of breakage is slim - less than 1%. But, if that were to happen can you easily afford to replace the stone? If not then you need insurance. Or at least that is how I have always judged it.