Why would a jeweler participate in a fraudulent appraisal?

[GalinAK]

Hello!
In 2011 my (now ex-husband who is very "slippery") gave me an engagement/wedding ring which included an appraisal with the following description;

"one cut corner rectangular modified brilliant diamond weighing 5.60/100cts. The diamond measures 11.02x9.13x6.38mm K color VS2 clarity. The diamond is EGL certified. (certificate #here). The diamond is set in a Ladies platinum diamond semi mounting by Jewels by Star Ltd. The mounting has (182) round brilliant cut diamonds micro pave set 1.05/100cts total weight G color VS clarity. (serial no here)." Fair Market Value $121,000.00

The jeweler is extremely reputable in my community and services a very high end clientele. The appraisal is stamped with both "graduate of GIA" and as a "senior member of N.A.J.A" with the document having a boarder that I have seen on sights demonstrating a "legit" appraisal.

* Before you say it - as a side note, I have since had it GIA Certified and the only difference (though a big one) is that the color is really "M" *

My husband once told me that it cost over $4000 a year to add this insurance rider to our homeowner policy. Last year I visited the Jeweler about possibly purchasing the ring back. After much pressing, he showed me the file and I learned that my husband's total purchase price was for $43,000 - however, only $9000 out of pocket, the remaining balance was through an insurance claim on another ring he had that said jeweler discovered a "crack" in. The jeweler then informed me that "you don't want that appraisal" and educated me to the fact that an insurance company would only provide me with the replacement value, which would be about $45,000.

The ring is beautiful and more than I would have ever expected. I am not a diamond snob and could care less about the color. Frankly, I was wearing what most people pay for a car, on my ring finger. I didn't need to think it was the price of a condo instead and never had a reason to see the appraisal. - SO WHY ON GODS EARTH, would an appraiser/jeweler almost triple the fair market value on a ring, risking his credentials for something that does NOTHING for anyone but cost outlandish insurance premiums? What would you - or is there anything that can be - done about this practice?

 

[oldminer]

Why is the mis-representation being directed at an appraiser? Sounds like the "reputable" retailer sold your husband a K color with a near worthless document from EGL and that part or most of what was paid may have come from some sort of questionable insurance loss. Sounds like you are surrounded by questionable things and events. Was the $121,000 report possibly generated by UGS, a part of EGL, or from a specific NAJA appraiser? For many years UGS claimed they had an NAJA Member on staff and finally and after much pressure they finally removed this long out of date and incorrect statement. UGS tends to use a maximum amount on most every report and it will cost anyone way too much for insurance coverage. Such reports often influence people to pay too much, too. Do you know what actually was paid? Maybe for the M color, the amount was somewhat right. That's not a cure, but it may be a major factor in how bad off things are.

No one on Pricescope really can tell you why some consumers are too willing to believe whatever they are told on an official piece of paperwork. No one can tell you why a particular retailer can enjoy being known as "reputable" and still offer up incorrect documents and provide poor quality appraisal reports and get away with it by telling you that they don't know anything and it is some outside expert providing this to them and to you. They know better, but they get away with claiming ignorance over and over again. Once in a great while, one of them gets caught and makes good, but it is a rare instance.

You can be far better off with vendors who have been truly vetted by years of known activity in an open environment where consumers share their collective knowledge and experience.

 

[Bron357]

Appraisals for insurance are commonly “inflated” as the $$$$ figure is supposed to represent the “retail replacement cost” which includes taxes, commission and a built in buffer for the 10 - 15 % discount that the insurance company will force upon the supplier.
A similar size diamond on James Allen is currently selling for around $100,000 so add on the insurance buffer and $120,000 isn’t ridiculous.
BUT if you try and sell that same diamond tomorrow now you own it, say at auction to facilitate an immediate sale, you will be lucky to get $50,000!
This is because the auction house will charge you a 20% fee to sell it AND charge the buyer another 20% on top of auction price.
When it sells for say $60,000 - you get $48,000 while the buyer pays $72,000.
So the insurance appraisal value is a “pie in the Sky” figure and of course consumers are very happy (usually) to see such a stellar appraised value and insurance companies are very happy because you pay premiums on the appraised value.
When it comes to claims, insurance companies prefer to provide a replacement diamond as per the specifications (and it won’t cost the $121,000) or a cash payout for the sum insured. They do it this way so they, the insurance company, comes out on top. If you submit a valuation for say $40,000 to enjoy lower premiums when a claim is made and the insurance company realises that a replacement diamond will cost them $85,000 guess what, they choose to give you $40,000 cash!
There are basically 3 prices for “this” diamond.
1. The price you’d get for an immediate sale ie at auction (which is less selling fees) $48,000
2. The price you’d pay to buy it from a retail establishment (which includes taxes and profit mark up ) $100,000
3. The price an insurance appraisal might indicate as replacement retail value (which is inflated by the discount insurance companies expect from the supplying vendor) $120,000.
I think what the jeweller is trying to say is that while the ring was insured for $121,000 as per “the process” if a claim had been made and you provided with a replacement diamond, the actual “today amount of money in the hand figure to sell it and get cash ” is about $45,000.

 

[GalinAK]

Why is the mis-representation being directed at an appraiser? Sounds like the "reputable" retailer sold your husband a K color with a near worthless document from EGL and that part or most of what was paid may have come from some sort of questionable insurance loss. Sounds like you are surrounded by questionable things and events. Was the $121,000 report possibly generated by UGS, a part of EGL, or from a specific NAJA appraiser? For many years UGS claimed they had an NAJA Member on staff and finally and after much pressure they finally removed this long out of date and incorrect statement. UGS tends to use a maximum amount on most every report and it will cost anyone way too much for insurance coverage. Such reports often influence people to pay too much, too. Do you know what actually was paid? Maybe for the M color, the amount was somewhat right. That's not a cure, but it may be a major factor in how bad off things are.

No one on Pricescope really can tell you why some consumers are too willing to believe whatever they are told on an official piece of paperwork. No one can tell you why a particular retailer can enjoy being known as "reputable" and still offer up incorrect documents and provide poor quality appraisal reports and get away with it by telling you that they don't know anything and it is some outside expert providing this to them and to you. They know better, but they get away with claiming ignorance over and over again. Once in a great while, one of them gets caught and makes good, but it is a rare instance.

You can be far better off with vendors who have been truly vetted by years of known activity in an open environment where consumers share their collective knowledge and experience.

Why is the mis-representation being directed at an appraiser? Sounds like the "reputable" retailer sold your husband a K color with a near worthless document from EGL and that part or most of what was paid may have come from some sort of questionable insurance loss. Sounds like you are surrounded by questionable things and events. Was the $121,000 report possibly generated by UGS, a part of EGL, or from a specific NAJA appraiser? For many years UGS claimed they had an NAJA Member on staff and finally and after much pressure they finally removed this long out of date and incorrect statement. UGS tends to use a maximum amount on most every report and it will cost anyone way too much for insurance coverage. Such reports often influence people to pay too much, too. Do you know what actually was paid? Maybe for the M color, the amount was somewhat right. That's not a cure, but it may be a major factor in how bad off things are.

No one on Pricescope really can tell you why some consumers are too willing to believe whatever they are told on an official piece of paperwork. No one can tell you why a particular retailer can enjoy being known as "reputable" and still offer up incorrect documents and provide poor quality appraisal reports and get away with it by telling you that they don't know anything and it is some outside expert providing this to them and to you. They know better, but they get away with claiming ignorance over and over again. Once in a great while, one of them gets caught and makes good, but it is a rare instance.

You can be far better off with vendors who have been truly vetted by years of known activity in an open environment where consumers share their collective knowledge and experience.

Appraisals for insurance are commonly “inflated” as the $$$$ figure is supposed to represent the “retail replacement cost” which includes taxes, commission and a built in buffer for the 10 - 15 % discount that the insurance company will force upon the supplier.
A similar size diamond on James Allen is currently selling for around $100,000 so add on the insurance buffer and $120,000 isn’t ridiculous.
BUT if you try and sell that same diamond tomorrow now you own it, say at auction to facilitate an immediate sale, you will be lucky to get $50,000!
This is because the auction house will charge you a 20% fee to sell it AND charge the buyer another 20% on top of auction price.
When it sells for say $60,000 - you get $48,000 while the buyer pays $72,000.
So the insurance appraisal value is a “pie in the Sky” figure and of course consumers are very happy (usually) to see such a stellar appraised value and insurance companies are very happy because you pay premiums on the appraised value.
When it comes to claims, insurance companies prefer to provide a replacement diamond as per the specifications (and it won’t cost the $121,000) or a cash payout for the sum insured. They do it this way so they, the insurance company, comes out on top. If you submit a valuation for say $40,000 to enjoy lower premiums when a claim is made and the insurance company realises that a replacement diamond will cost them $85,000 guess what, they choose to give you $40,000 cash!
There are basically 3 prices for “this” diamond.
1. The price you’d get for an immediate sale ie at auction (which is less selling fees) $48,000
2. The price you’d pay to buy it from a retail establishment (which includes taxes and profit mark up ) $100,000
3. The price an insurance appraisal might indicate as replacement retail value (which is inflated by the discount insurance companies expect from the supplying vendor) $120,000.
I think what the jeweller is trying to say is that while the ring was insured for $121,000 as per “the process” if a claim had been made and you provided with a replacement diamond, the actual “today amount of money in the hand figure to sell it and get cash ” is about $45,000.

Oldminer - I think I wasn't clear in my expatiation. The reputable Jeweler has been in business since 1975 and without exposing him or his company, I can only say "Trust me - he is "THE man" to go to in my state. All the credentials in place and well known throughout the Leading Fine Jeweler circuits. He deals with high end designers such as Julius Klein, JB Star, Bayco, William Levine, Scarselli, Picchiotti etc etc... The setting was JB Star and purchased through him. The loose diamond was chosen out of several flown in from New York and set by himself. The JEWELER then conducted his own APPRAISAL as a certified NAJA appraiser.

I scheduled a meeting with this jeweler/appraiser after my divorce and confronted him about the EGL and inflated appraisal. He opened the file and showed me everything, assuring me that my husband knew EXACTLY what he was buying. I do believe this - you may note my original post stated that my husband was "slippery". I wanted him to buy the ring back, I even offered it for $30,000. My husband paid $43,000. The jeweler/appraiser offered to help me dump it but advised me to get the GIA Certification, which I did. However, BEFORE I even had it GIA Certified he told me "you don't want that appraisal." essentially he admitted to knowing that it was extremely high and for insurance purpose. He told me that even if the ring were lost, regardless on the $121,000 appraisal, the most any insurance company would ever give me for it would be $45,000. So, at the end of the day - what was the point in having such an inflated appraisal when the only purpose it served was a high cost to insure? I'm no expert in all of these acronyms and so I've attached a copy of the appraisal as I suspect that you are.

I suppose to be really direct and to the point, I'm wondering if there is enough trouble to be had to this Jeweler/appraiser over this document that I might use it to negotiate his buying back the ring?

Bron357 - I appreciate all of your information. It was very educational and gave me a much better understanding.

 

[GalinAK]

 

[lovedogs]

Appraisals are often inflated. I'm not understanding how this could help with anyone buying back the ring? Your husband likely overpaid for the stone itself, and the appraisal was inflated

 

[OoohShiny]

If you will pardon my ignorance and/or misreading of the situation, I must admit that I am confused as to what you want out of this situation, @GalinAK.

Would you be able to pinpoint which of these things is annoying you? Or are all of them irking?:

- the value of the appraisal does not reflect the purchase price of the stone
- your husband paid a lot of insurance based on the appraisal price (assuming he insured for the appraisal price and wasn't lying and plucking 4-grand out of the air)
- the potential secondhand price of the stone does not reflect the appraisal price OR the actual purchase price
- your husband was a slippery character (and you feel like the inflated appraisal was another way he was 'cheating' you?)
- the GIA grading report came back as an M instead of the K listed on the original grading report


When it comes down to it, where do you want to go from here?

Do you just want to get rid of the ring? (at any cost? or maximising your 'return', which will likely take longer to achieve due to needing to wait for a buyer who would pay the (higher) price you want?)

Have you asked the retailer what his buyback offer would be?

Do you know how much your ex-husband actually paid for the ring? I am confused by what you have written.
What was the total price?
How much was paid in cash and how much by insurance on another stone?

If your husband only paid $43k for a stone that has equivalents listed at $100k on websites now, is that what is annoying you most? (because you were expecting to be able to release 100-large in cash by selling it but may only get perhaps a third of that?)

I am a simple man, you have to spell these things out for me lol

 

[oldminer]

I just happen to recognize the signature and style of the "appraisal", so I know who wrote this report and what state the jeweler is in. I never fielded any complaint before about him, but such things do pass through my hands most every week.

If this jeweler is such a well respected and go-to guy in your state then he knows a K color from an M color. If this appraiser is also the seller of that diamond, then the paper that he wrote up is part of a situation which cheats consumers. A qualified appraisers knows K from M and does not simply repeat what is on a bad and unworthy lab report. It is not ethical to cause you to over-insure your diamond. It is a waste of your money or an unethical individual might make a claim for loss in order to get an unfair improvement in a replacement diamond. Both these situations are wrong headed and loaded with legal issues. False grading of a diamond is indeed slippery and unethical. Claiming insufficient knowledge is not a good excuse when a so-called "expert" is providing the opinion.

How far you can go to pressure such a jeweler is unknown. It is up to you to chase it down with a good attorney. That will surely cost you money first and who knows if it will end with a payout or a settlement. It is sad and I feel badly for you.

You can contact NAJA and make a formal complaint. Supply copies of your original appraisal and the GIA report with the much lower color. Repeat the facts as you know them, and we'll take it into consideration on an ethics charge. I can't say it will make any financial difference to you, but it is what we need to do to encourage ethics in the trade. I am Chair of Ethical Issues for NAJA.

 

[the_mother_thing]

Cutting through all the fluff, it sounds like OP wants to use the inflated appraisal to essentially strong-arm the jeweler into buying it back from her ... that’s how I’m reading the situation. Wouldn’t that be considered extortion?

I’m gathering this based on her statement: “I suppose to be really direct and to the point, I'm wondering if there is enough trouble to be had to this Jeweler/appraiser over this document that I might use it to negotiate his buying back the ring?“

I think the RIGHT thing to do is what @oldminer suggests - file a formal complaint, and sell the diamond through legitimate/legal means if you choose. Resorting to extortion would only add “slippery” to your own character assessment.

 

[Octo2005]

My husband once told me that it cost over $4000 a year to add this insurance rider to our homeowner policy. Last year I visited the Jeweler about possibly purchasing the ring back. After much pressing, he showed me the file and I learned that my husband's total purchase price was for $43,000 - however, only $9000 out of pocket, the remaining balance was through an insurance claim on another ring he had that said jeweler discovered a "crack" in. The jeweler then informed me that "you don't want that appraisal" and educated me to the fact that an insurance company would only provide me with the replacement value, which would be about $45,000.

If your ex-husband purchased this ring using funds from a previous insurance claim, this may have been a contributing factor in why your insurance premium would be high. That being said, even if the ring were truly purchased and worth the 100+K, $4000 a year premium seems exorbitantly high.

It could also, be that he was lying about paying $4000/year on insurance which seems entirely possible since you stated that he was a "slippery" guy. Maybe he was using those funds for things behind your back.

 

[ringo865]

The tiny print says that the appraisal is only an opinion, which could vary from appraiser to appraiser. Further it states that the appraisal is not a contract or offer to buy the stone at the appraised value. (This is “CYA” language).

 

[GalinAK]

I just happen to recognize the signature and style of the "appraisal", so I know who wrote this report and what state the jeweler is in. I never fielded any complaint before about him, but such things do pass through my hands most every week.

If this jeweler is such a well respected and go-to guy in your state then he knows a K color from an M color. If this appraiser is also the seller of that diamond, then the paper that he wrote up is part of a situation which cheats consumers. A qualified appraisers knows K from M and does not simply repeat what is on a bad and unworthy lab report. It is not ethical to cause you to over-insure your diamond. It is a waste of your money or an unethical individual might make a claim for loss in order to get an unfair improvement in a replacement diamond. Both these situations are wrong headed and loaded with legal issues. False grading of a diamond is indeed slippery and unethical. Claiming insufficient knowledge is not a good excuse when a so-called "expert" is providing the opinion.

How far you can go to pressure such a jeweler is unknown. It is up to you to chase it down with a good attorney. That will surely cost you money first and who knows if it will end with a payout or a settlement. It is sad and I feel badly for you.

You can contact NAJA and make a formal complaint. Supply copies of your original appraisal and the GIA report with the much lower color. Repeat the facts as you know them, and we'll take it into consideration on an ethics charge. I can't say it will make any financial difference to you, but it is what we need to do to encourage ethics in the trade. I am Chair of Ethical Issues for NAJA.

Oldminer = THANK YOU!! You have understood what I was trying to convey in its entirety and I appreciate the effort and expertise you've given me on this forum. I am not upset by the value of the appraisal vrs. the actual value or purchase price as some others are seemingly perceiving. I AM bothered by the cost to insure such a high appraisal for no reason. I did want to sell it and know a realistic price I could get for it. The "M" color has made it difficult to unload. I had contemplated threatening to report him for the poor business practice of being both the seller and appraiser with an inflated value after facilitating the other insurance claim and other suspect circumstances revolving around the purchase, unless he bought it back. That might not make me sound too nice but, its the truth. I do believe I will file a formal complaint. I cannot thank you enough for your feedback.

 

[GalinAK]

I just happen to recognize the signature and style of the "appraisal", so I know who wrote this report and what state the jeweler is in. I never fielded any complaint before about him, but such things do pass through my hands most every week.

If this jeweler is such a well respected and go-to guy in your state then he knows a K color from an M color. If this appraiser is also the seller of that diamond, then the paper that he wrote up is part of a situation which cheats consumers. A qualified appraisers knows K from M and does not simply repeat what is on a bad and unworthy lab report. It is not ethical to cause you to over-insure your diamond. It is a waste of your money or an unethical individual might make a claim for loss in order to get an unfair improvement in a replacement diamond. Both these situations are wrong headed and loaded with legal issues. False grading of a diamond is indeed slippery and unethical. Claiming insufficient knowledge is not a good excuse when a so-called "expert" is providing the opinion.

How far you can go to pressure such a jeweler is unknown. It is up to you to chase it down with a good attorney. That will surely cost you money first and who knows if it will end with a payout or a settlement. It is sad and I feel badly for you.

You can contact NAJA and make a formal complaint. Supply copies of your original appraisal and the GIA report with the much lower color. Repeat the facts as you know them, and we'll take it into consideration on an ethics charge. I can't say it will make any financial difference to you, but it is what we need to do to encourage ethics in the trade. I am Chair of Ethical Issues for NAJA.

Oldminer = THANK YOU!! You have understood what I was trying to convey in its entirety and I appreciate the effort and expertise you've given me on this forum. I am not upset by the value of the appraisal vrs. the actual value or purchase price as some others are seemingly perceiving. I AM bothered by the cost to insure such a high appraisal for no reason. I did want to sell it and know a realistic price I could get for it. The "M" color has made it difficult to unload. I had contemplated threatening to report him for the poor business practice of being both the seller and appraiser with an inflated value after facilitating the other insurance claim and other suspect circumstances revolving around the purchase, unless he bought it back. That might not make me sound too nice but, its the truth. I do believe I will file a formal complaint. I cannot thank you enough for your feedback.

 

[lovedogs]

Oldminer = THANK YOU!! You have understood what I was trying to convey in its entirety and I appreciate the effort and expertise you've given me on this forum. I am not upset by the value of the appraisal vrs. the actual value or purchase price as some others are seemingly perceiving. I AM bothered by the cost to insure such a high appraisal for no reason. I did want to sell it and know a realistic price I could get for it. The "M" color has made it difficult to unload. I had contemplated threatening to report him for the poor business practice of being both the seller and appraiser with an inflated value after facilitating the other insurance claim and other suspect circumstances revolving around the purchase, unless he bought it back. That might not make me sound too nice but, its the truth. I do believe I will file a formal complaint. I cannot thank you enough for your feedback.

I'm still very confused. You are upset about the inflated appraisal because it made insurance cost more, or bc it gave you unrealistic expectations for selling, or both? Appraisals are always inflated, especially if the person isn't specifically told, "this is for insurance". Sometimes appraisals are a nonsense "feel good" number. But I still don't understand what the inflated appraisal has to do with the jeweler buying back the stone. Just bc something appraised for xx dollars doesn't mean anyone has to buy it for xx dollars.

 

[GalinAK]

If you will pardon my ignorance and/or misreading of the situation, I must admit that I am confused as to what you want out of this situation, @GalinAK.

Would you be able to pinpoint which of these things is annoying you? Or are all of them irking?:

- the value of the appraisal does not reflect the purchase price of the stone
- your husband paid a lot of insurance based on the appraisal price (assuming he insured for the appraisal price and wasn't lying and plucking 4-grand out of the air)
- the potential secondhand price of the stone does not reflect the appraisal price OR the actual purchase price
- your husband was a slippery character (and you feel like the inflated appraisal was another way he was 'cheating' you?)
- the GIA grading report came back as an M instead of the K listed on the original grading report


When it comes down to it, where do you want to go from here?

Do you just want to get rid of the ring? (at any cost? or maximising your 'return', which will likely take longer to achieve due to needing to wait for a buyer who would pay the (higher) price you want?)

Have you asked the retailer what his buyback offer would be?

Do you know how much your ex-husband actually paid for the ring? I am confused by what you have written.
What was the total price?
How much was paid in cash and how much by insurance on another stone?

If your husband only paid $43k for a stone that has equivalents listed at $100k on websites now, is that what is annoying you most? (because you were expecting to be able to release 100-large in cash by selling it but may only get perhaps a third of that?)

I am a simple man, you have to spell these things out for me lol

oohshiney - You're funny. haha.

Total purchase price was $43,000. $9000 cash out of pocket and $34,000 from an insurance claim.

One individual said there was similar listed for $100,000 but I'm pretty sure she looked that up using the "K" color on the appraisal not the "M" color my GIA cert says. I'd LOVE for my ring to be worth $121,000 - wouldn't anyone?

My slippery husband also had several small $100,000 life insurance policies on me and besides the insurance claim used to purchase this ring, happened to sink a boat rendering him $500,000 from insurance as well. What irks me, you ask?..... hmmmm, to some degree all of those items you listed.
- The inflated appraisal was used in court to paint me out to be a 'gold digger'
- The subsequent amount I HAVE PAID for insurance on the thing.
- That when I learned how worthless and EGL certification was and met with the jeweler after, he
still assured me that I could re-sell it for at least $65,000 "even if it were and "O"
- That based upon that 65k figure, I rejected the highest offer I've ever received of $27,000 from
a jeweler with the GIA "M" certificate.
- I've had 3 years to come to terms with the slipperiness but, I will say that I am a little bothered
that the jeweler who knew about the boat, and helped with the insurance claim on the previous
ring used to purchase this one, aided to adding more profitability to my disappearing
body........But, I digress and this forum isn't about divorce from hell whoa's.

Ultimately, I would like the jeweler to buy it back. He has the showcase, marketing and clientele to sell it again and profit from it (again), since I offer to sell it back to him for $30,000.

 

[GalinAK]

I'm still very confused. You are upset about the inflated appraisal because it made insurance cost more, or bc it gave you unrealistic expectations for selling, or both? Appraisals are always inflated, especially if the person isn't specifically told, "this is for insurance". Sometimes appraisals are a nonsense "feel good" number. But I still don't understand what the inflated appraisal has to do with the jeweler buying back the stone. Just bc something appraised for xx dollars doesn't mean anyone has to buy it for xx dollars.

Well sure. I was initially upset by being given the impression the ring was valued at $121,000. (read my response to oohshiny for that detail) Does the average individual know appraisals are always inflated? I am not an expert. Hell, I'm not even a consumer! I may have suspected there was some fluff there but not to the tune of an $80,000 over stretch. Particularly when the appraisal was conducted by the actual jeweler who pieced it all together and sold it. IE: Jeweler and Appraiser are the same person. I'd expect an in-box appraisal from Costco to be crap but not an expert jeweler who is also a certified appraiser.

Nonetheless, do you not think that gives unrealistic expectations for selling or both? I honestly thought that I could probably get $80,000 for it. Then I learned how much less you get for jewelry on resale. So, I accepted this big number that affected my divorce asset equalization of $121,000 - was now most likely going to only net me $40,000 - AND THEN, I LEARNED MY JEWELER WOULDN'T EVEN TAKE IT BACK FOR $30,000..... but what REALLY FROTHED MY A$$ was the consistent offer range of $12,000 - $18,000. I went from the perception that I had a ring worth $121,000 to the reality that I have a ring worth less than $20,000. - Now, if that wouldn't upset you and you are still confused.... hands down, you win the Bigger Person Award!

As for my insurance complaint; IT DOESN'T MATTER IF THE APPRAISAL SAYS ITS VALUED AT $121,000. All that does is tell the insurance company I have a potential loss to them of $121,000. I pay BIG for that loss. However, if I actually LOSE the item, the insurance company will research what the replacement value is.... and whala, low and behold, it is only $45,000. I will only get $45,000. I will not get $121,000.... but, I have PAID BIG MONEY TO HAVE A POLICY FOR A $121,000 piece. Do you dig?

One final thing to put into perspective; I am a Real Estate Broker. When you buy an investment, you sign no less than 50 documents warning you "buyer beware" and are allowed a certain amount of time to conduct your due diligence. Part of that due diligence and assurance (and its a big one) that you are not paying too much for your asset, IS THE APPRAISAL. When you insure your home, you insure it for the amount you purchased it for. There is no "inflated homeowners insurance" appraisal. Why would the average person think or even accept differently about a $121,000 jewelry appraisal?

 

[OoohShiny]

It sounds like you need to report your husband for insurance fraud.

 

[Octo2005]

@GalinAK - It sounds like your ex is a real piece of work. I am sorry that you are having to deal with all of this. Try to think of the monetary loss of what you thought you would be able to get vs what you can actually get, as a small price to pay to be rid of this man and to start on the path to your new future, which in my opinion is priceless I wish you the best moving forward and hope that you are able to quickly put this all behind you.

 

[denverappraiser]

Get a competent appraisal using the information you now have and then shop that insurance policy. $4000 on a $121k declared value is quite high already. If a reasonable limit is half that (just guessing), then you’re on the order of $3000 too high unless there’s more to this insurance than you’ve mentioned. Has the premium been escalated because of that other claim?

 

[cmd2014]

So, I accepted this big number that affected my divorce asset equalization of $121,000 - was now most likely going to only net me $40,000 - AND THEN, I LEARNED MY JEWELER WOULDN'T EVEN TAKE IT BACK FOR $30,000..... but what REALLY FROTHED MY A$$ was the consistent offer range of $12,000 - $18,000. I went from the perception that I had a ring worth $121,000 to the reality that I have a ring worth less than $20,000.

Perhaps you can sue. The incompetent and/or fraudulent appraisal has cost you real money in damages in your divorce settlement as well as in insurance payments over the years. That is not ok. You should also file a complaint with the regulatory body. Because this is not going to be ok for other people in the future as well.

 

[the_mother_thing]

Perhaps you can sue. The incompetent and/or fraudulent appraisal has cost you real money in damages in your divorce settlement as well as in insurance payments over the years. That is not ok. You should also file a complaint with the regulatory body. Because this is not going to be ok for other people in the future as well.

I’m no lawyer but I think OP’s beef there is more with her divorce lawyer not recommending an actual resale value appraisal of the diamond moreso than an insurance appraisal, which has a far different use & value for a reason.

 

[GalinAK]

It sounds like you need to report your husband for insurance fraud.

I did..... I spent six hours with two FBI agents in 2015

 

[GalinAK]

@GalinAK - It sounds like your ex is a real piece of work. I am sorry that you are having to deal with all of this. Try to think of the monetary loss of what you thought you would be able to get vs what you can actually get, as a small price to pay to be rid of this man and to start on the path to your new future, which in my opinion is priceless I wish you the best moving forward and hope that you are able to quickly put this all behind you.

That's very sweet of you. There was so much fraud (fake LLC's owning our properties with fake Mortgage Companies liening property we paid cash for etc) there was so much sophistication to the scam my first attorney made everything worse and my second was left with a pile to do his best to clean up. Most of it was over the judges head. Forensic accountants, three years of my life and $90,000 in attorney fees later - Believe you, me - its all been a small price to pay in exchange for getting away!!! The divorce finalized almost 4 years ago. That part is all very much and very gladly behind me.

What lingers is my bitterness toward these sleazy "professionals" - such as this jeweler/appraiser -who participate and aid men such as my ex-husband in screwing innocent people and risk their own reputations or livelihoods. For what? The good ol' boys club is full of confidence there wont be repercussions.