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- Jul 21, 2004
- Messages
- 9,159
Re: Dis You get Insurance for your diamond??? Waste of money
If you’ve done your due diligence with the purchase, chances are good you’ve got a pretty good idea what the competitive marketplace is like for whatever it is that you bought and the minimum requirements for getting the insurance company to agree to the policy are pretty easy to comply with. A copy of the receipt and the lab docs is often all they require. If that’s your sole objective, no it’s not usually necessary to get an independent inspection.
The reason people get appraisals on new purchases revolve around 3 basic points.
1) It’s a quality control step that’s outside the reach of the seller. It’s a way to match that you got the correct stone, that it’s undamaged, that it’s set correctly and securely, that the other craftsmanship details are up to snuff, etc. Trust but verify.
2) It provides documentation for the replacement step of the insurance relationship. Insurance policies that never result in a claim are irrelevant, the ‘proof is in the pudding’, and that happens after a loss. With most policies, the company is agreeing to replace your item with another of ‘like kind and quality’ or words to that effect and their definition of this is the description provided when the policy was created. The tighter the description, the better the photographs, and the more details included, the better for you. Similarly, the looser and broader the description, the better it is for them. 'Appraisals' that are bundled with the purchase rarely are very specific because it benefits the jeweler to be very general as well. By the way, this is the reason that replacement values tend to be inflated on jeweler supplied reports as well. They want to point at it as evidence of a bargain, and that only works if the number is big.
3) Jewelers routinely say things that don’t make sense or that aren’t the whole story. It’s often good to have a 3rd party to talk to about what the jeweler did or didn’t say in the sales presentation. The appraisal process is an opportunity to discuss it with someone who doesn't have a pony in the race and who doesn't have a paycheck contingent on whether or not you buy. This is the reason for independent appraisers rather than using someone working for or hired in by the store.
I’m, of course, not an unbiased observer here but I’ll chime in.flamingoezz|1361541207|3387512 said:
If you’ve done your due diligence with the purchase, chances are good you’ve got a pretty good idea what the competitive marketplace is like for whatever it is that you bought and the minimum requirements for getting the insurance company to agree to the policy are pretty easy to comply with. A copy of the receipt and the lab docs is often all they require. If that’s your sole objective, no it’s not usually necessary to get an independent inspection.
The reason people get appraisals on new purchases revolve around 3 basic points.
1) It’s a quality control step that’s outside the reach of the seller. It’s a way to match that you got the correct stone, that it’s undamaged, that it’s set correctly and securely, that the other craftsmanship details are up to snuff, etc. Trust but verify.
2) It provides documentation for the replacement step of the insurance relationship. Insurance policies that never result in a claim are irrelevant, the ‘proof is in the pudding’, and that happens after a loss. With most policies, the company is agreeing to replace your item with another of ‘like kind and quality’ or words to that effect and their definition of this is the description provided when the policy was created. The tighter the description, the better the photographs, and the more details included, the better for you. Similarly, the looser and broader the description, the better it is for them. 'Appraisals' that are bundled with the purchase rarely are very specific because it benefits the jeweler to be very general as well. By the way, this is the reason that replacement values tend to be inflated on jeweler supplied reports as well. They want to point at it as evidence of a bargain, and that only works if the number is big.
3) Jewelers routinely say things that don’t make sense or that aren’t the whole story. It’s often good to have a 3rd party to talk to about what the jeweler did or didn’t say in the sales presentation. The appraisal process is an opportunity to discuss it with someone who doesn't have a pony in the race and who doesn't have a paycheck contingent on whether or not you buy. This is the reason for independent appraisers rather than using someone working for or hired in by the store.
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