Purchasing First Diamond - A Cut Above?

[SinkingFun]

You don't need another appraisal. You can use the insurance appraisal that came with your ring or you possibly can use the sales receipt in combination with a copy of the diamond certificate. The downside of using an inflated appraisal is that you'll overpay for the insurance premiums for a few years until the actual value catches up with the appraised value. You know if you lost the ring next week that it would cost exactly the same as what you paid to replace it, so there is no compelling reason to pay for higher premiums.

(I always recommend appraisals on rings with uncertified stones, or those with a cert other than GIA or AGS, or on second hand items. But there is really no reason to have an extra appraisal on a diamond that has already been graded by AGS.)

Just read this on the Whiteflash web page:

" * The letter of verification, which is a service paid for by Whiteflash, is intended as a courtesy and can be used to conveniently secure personal jewelry insurance. This document is honored by Jewelers Mutual Insurance Co. It is not intended as a substitute for a full independent third-party appraisal for customers requiring such, and is not included with orders shipped to independent appraisers."

The reason I initially wanted to go locally is that they offered a cash out policy if anything happened to the ring. I see that Jewelers Mutual does not offer this kind if policy, but if something happened to the stone, would they replace it with a similar "A Cut Above" diamond? Also, would they give me the freedom to use the $6000 to pick an ACA stone from Whiteflash or would they replace it on their own, probably lower price, making my decision to insure the appraised amouny useless?

Is jewelers mutual a good place to insure a ring?

 

[diamondseeker2006]

My understanding is that they will try to work with the vendor of your choice, and I would hope they would with WF since WF basically endorses their insurance. My daughter's ring is insured through them with the valuation that WF provided. The big downside was that they wouldn't insure for the purchase price, which my insurance will. But hopefully it isn't too much of a difference in premium and you won't have to reappraise for a long time!

If your local insurance offers a cash-out policy for jewelry, then that would be my preference subject to comparing premiums to JM.

 

[SinkingFun]

My understanding is that they will try to work with the vendor of your choice, and I would hope they would with WF since WF basically endorses their insurance. My daughter's ring is insured through them with the valuation that WF provided. The big downside was that they wouldn't insure for the purchase price, which my insurance will. But hopefully it isn't too much of a difference in premium and you won't have to reappraise for a long time!

If your local insurance offers a cash-out policy for jewelry, then that would be my preference subject to comparing premiums to JM.

I don't think my local insurance company will accept the letter of verification as an appraisal, which means I'd have to get one done. I'll call them today and see what they say.

 

[diamondseeker2006]

I think they will. I think if you don't ask them and then send that in with the copy of the AGS report, it should be all you need. That is why they send the independent valuation, for insurance.

 

[SinkingFun]

Alright. I'll give it a shot and see what they say.

 

[SinkingFun]

After some research, I'm going to just insure it through JM. The premium through my insurance company is 3x as much as JM and JM said they'd replace it with a similar ACA diamond in the event of a loss. Plus, I'll save money not having to appraise the ring (Travelers wouldn't accept the WF letter of verification).

I've seen a lot of people recommend JM on here, so I'm assuming it's good and reliable.