Jewelers working with your stone: insurance issues?

[raddygast]

Ok, I''ve been to three custom designers in town so far, and all have given me the same story, leading me to believe it must actually be true and not just some profit-maximizing bunk.

They''ve all said that yes, they will work with a stone that I bring in myself, but it is not advised because if it gets a) stolen or b) damaged while they are working on it, their insurance policies will simply not cover it. As such, they are reluctant to take stones that are fairly high in value -- they''d probably do amethyst or topaz or maybe garnets, for example, but would be wary of taking in a foreign ruby.

Is this fairly standard? Maybe this is a Canadian thing. All my research so far indicates that I''ll probably be able to get the best gem for my money by buying online through one of the expert sites (like cherrypicked, walterarnstein, etc.). I was hoping to do this, but if it''s gonna be such a huge hassle to then convince a local designer to make a setting for it, maybe it isn''t worth it?

Never heard this sort of story from anyone posting here, so I was wondering what the deal was. Maybe I''ll end up having to go for an internet designer too... but I was hoping that at least for the setting, I''d be able to meet with the designer face-to-face throughout the project for feedback and more valuable discussions.

 

[coldfusion]

It is standard.

I was very surprised to learn this myself a few months ago.

 

[raddygast]

Wow.

So what does everyone on this forum do? Seems like you are all gem aficionados that buy rings online or through dedicated gem sources. Do the online setting-designers get around this insurance risk somehow?

 

[strmrdr]

I just roll the dice and take the chance.
If you chose well with both the stone and the person setting it there isnt much chance of it going wrong.

 

[bar01]

I got my sapphire from one place. The ring is being custom made from another place - using my stone. No problems.

Others here have also gotten their diamonds or gems from one place and had the setting done by another.

The second you buy your gems have them added to your personal insurance anyway.

 

[WinkHPD]

As a jeweler I have insurance for the loss or theft of your stone, but not for damage. The risk of damage is on you. Think about it, you buy a 10k stone, offer some jeweler the chance to set it for you for anyplace from $15 to $75 depending on whether or not you are in a major jewelry center area like New York, or paying full retail at Zales. Now for the few dollars profit that he is going to make, is that a fair exchange for him to accept the risk for? One broken stone could take years to pay for out of the small profits made on stone setting.

Loss is a different issue though in my opinion. I have never heard of a jeweler not having insurance coverage for loss or theft, nor would I leave my jewelry with one who did not. I can not say what the policies are like in Canada, but I would not sleep nights if I did not have my client''s jewelry insured against loss while it was in my possession.

Wink

 

[raddygast]

Thank you, Wink. I will ask my (potential) jewellers about this in the next few days. It may actually be that only one of them claimed not to be responsible for loss or theft. Certainly it seemed to me to be a strange thing for things IN their store not to be insured under the store policy.

Then again, maybe it has to do with taking in a gem that has not been appraised and hence is of unknown value? Maybe if someone brings in some insanely rare and expensive gem and the jeweller doesn''t know it and accepts it, it gets stolen, and then some claim is made against it -- that would be a scenario to warrant such a policy. Insurance might balk if the stone were $100,000 or something. Come to think of it, if an "unknown stone" was stolen, how is the jeweller''s policy going to determine its replacement value, unless the stone had already been appraised by somebody qualified to do so?

 

[bar01]

If you get a stone separately (from a different source then the jeweler) always have it appraised before you agree to buy it.

Once it is appraised and you decide to buy it - have it insured (under your own policy) IMMEDIATELY.

Then what ever you do with it – (or a jeweler does with it) it will be covered for loss, theft and damage. Now if something happens at the jeweler (damage, loss, theft) you can let your insurance company deal with their insurance company. But when you bring it in and he/she starts warning you about liabilities – you can provide your appraisal and your insurance certificate – and tell him “ its covered”.

 

[raddygast]

Exactly how do you insure a stone that is not in your possession?

I don''t really have homeowner''s insurance anyway. But if I were to get it, would that type of policy extend to a case like this? Is this what they call getting a "rider" policy?

 

[bar01]

Well,

Sooner or later you are going to have to have it (the ring and stones) independenlty appraised and insured anyway - right? Whether you buy the whole thing from a Jeweler (or not) you need to protect something this expensive.

Check with several well-known insurances companies about how you can insure your purchase- before you make the purchase. When I was a renter - I had renters insurance. When I bought a home I got homeowners insurance. In both cases I had to have a special rider to cover expensive possessions (computers, jewelry, antiques, etc..).

There has been much discussion about Chubb here on PS - do a search. I believe some have been able to get Chubb to give them an insurance policy for their jewelry without having renters or homeowners insurance. Chubb may only be here in the states - so shop around.

I assume that the stone/gems are going a big cost of the enitre ring. You want to personally inspect and approve these stones before they are set in the ring - right ? (whether the jeweler gets them - or you get them from someon else). If you want - have the jeweler or the person selling you the gem - send them driectly to your selected independent appraiser (not one that they choose) before you agree to buy it. Then have the appriaser fax the appraisal to your insurance company - and you are covered from there on out.

Most people selling you a stone - will allow you an evaluation time 7-14 days to review and inspect it before you have to purchase it. In this case the stones will be in your "possesion" and can be appriased. Or they will agree to let you look at it in their store - and they will send it to your appraiser.

Either way - If the appriasal comes back not what you were told (cost, quality) - return it for a full refund (minus shipping or restock fees if applicable).