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Insurance Advise


prdurrant
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Hi Guys,

 

Firstly, I want to say what a great assistance this site has been in choosing a diamond. I have just purchased a diamond online and am now after some advise for selecting jewelry insurance.

 

The GIA appraised value of the set diamond is $36K, but I paid considerably less than this. What amount should I be getting the insurance for? I do not want to find myself with a damaged or lost ring and not be able to replace it.

 

Any recommendations / steers would be great.

 

Thanks

 

Paul

 

p.s. I am looking to propose in the next day or two, so want to sort this out before the diamond ventures out in public :)

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Thanks for getting back to me Neil and David.

 

The details are as follows:

 

The diamond is a 3.02ct cushion, with VS-1 Clarity, G color, Very Good cut with a Total Carat Weight of 3.52ct. It is Clarity Enhanced by laser and the certificate says that it has a retail replacement value of $36.7K from a GIA Graduate Gemologist.

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GIA Graduate Gemologist = anyone who has completed a "Graduate Gemologist" course at GIA. Not the same thing as a GIA report at all.

 

Let's assume for a moment that they got the colour right - which is a big if - and that the laser drilling (which in NO WAY would be graded VS1 by GIA, even if it is invisible to the naked eye) means you have an I1 stone - though it could be an I2. Depending on the details of cut (GIA does not grade cut for anything other than round brilliants), finish, fluorescence etc. you are looking at a stone that is worth between $20 and $30k. Of course, if they got the colour wrong, it could be less.

 

However you have two problems: you don't know what the stone really is - since it has not been graded by GIA - and you don't seem to have a good appraiser, given the "VS1" clarity grade for a laser drilled stone. Maybe it faces up like one, but it is not one. Missing both elements gives you a very large margin of uncertainty as to what the diamond is really worth (and on what the diamond really is - period).

 

My hunch, for what it is worth, is that you would be overinsuring it if you were to base the policy on the appraisal, but it's a guess. My advice is to seek a reputable, capable appraiser and ask the "insurance valuation" question again.

Edited by davidelevi
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Many red flags here:

 

Is this an appraisal report that was provided to you by the seller or did YOU hire someone to write it? If the former, ignore it entirely, other than perhaps holding against the seller if you find it to be way out of line. If it's the latter, ring them up and ask some pointed questions:

 

Is it 'approximately' 3.02 carats or did someone actually weigh it? 3.00+ is a big deal in diamond pricing.

 

Are there any other clarity enhancements present? That phrase gets used to mask a variety of sins, in particular glass filling. It's a big deal and the FTC requires disclosure. If this is the dealers idea of disclosure of a filled stone, run. As Davide points out, there's no way a laser drilled stone is going to be a GIA VS1 and most of them aren't even SI1.

 

Have you actually seen this stone? Do you have it in your posession? If so, do you like the look? What was the price?

 

Choose your appraiser carefully. This issue isn't about the value conclusion as much as it feels like it. It's about the grading.

Edited by denverappraiser
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