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Protecting Your Ring
All You Need To Know About Getting an Appraisal
& Insurance
So you just spent a lot of money on your ring. Now
it’s time to protect your investment.
The first step in protecting your investment is getting the
ring appraised. Here’s what you need to know.
Poor appraisals are easy to come by. Chances are your dealer
gave you one. Unfortunately, they aren’t going to provide
you enough protection against insurance adjusters.
A good appraisal is not just going to tell you how much your
ring is worth. More importantly, it is going to describe in
detail what your ring is. Why is that important?
The only reason insurance companies want to know how much
your ring is worth, is to set a maximum amount they are obligated
to pay when you file a claim. Your insurance company doesn’t
really care how much money you spent to buy your ring. They
don’t even really care how much money you could sell
your ring for in the market place. Insurance companies are
not obligated to replace the value of the ring bought; they
are only obligated to replace the value of a ring that is
similar to the ring you bought.
This is a very important distinction. If your ring is appraised
at $10,000, but the insurance company can find a similar ring
for $5,000, than the insurance company is only going to give
you $5,000. That is why the value on your appraisal is ultimately
worthless when dealing with insurance companies.
What’s more important is how your ring is defined in
the appraisal. The more specific the definition, the less
flexibility the insurance companies have to shop for the best
deal.
A good appraisal will force the insurance company to find
a ring that is “truly” similar to the ring you
bought. And will therefore, be worth the same value as the
ring you bought.
Example
of a poor appraisal
Approximate Description & Actual Weight: *One brilliant
cut diamond weighing 1.31 carat natural. I I1. Semi-mounted
engagement ring in 18k white gold with eight specialty
cut diamonds and eight brilliant round diamonds. |
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Example of a good appraisal
The ring is a cast and assembled 18k white gold ‘solitaire’
style setting with a single round primary diamond prong
set in a cast 4 prong basket style setting. The shank
is 5.0mm wide at the shoulders and tapers to 2.25mm
at the back. On each shoulder are prong set 4 modified
marquise cut natural diamonds (8 stones total, fantasy
marquise cut, 2.63x3.42 – 1.92x1.5mm each, VS,
G-H, approx 0.35cts total weight). On each shoulder
is bead set a row of 4 additional round diamonds (8
stones total, round brilliant cut natural diamonds,
VS, F-G, approx 2.21-1.99mm each, approx 0.24cts total
weight). Size 6. Marked and tested 18k. Marked Calla
(hallmark). Marked Nelson (hallmark). See photo for
design details. Ring supplied by Shane Company, Denver
Co. Covered by warranty and trade in policy issued by
that company. |
A good appraisal doesn’t just describe the attributes
of the ring, but also the attributes of where the ring was
bought and any special warranties or services attached to
the ring.
Finding a Good Appriaser
The best place to find a good appriaser is through a professional
appraiser association. There are several to choose from.
American Gem Society
www.ags.org
American Society of Appraisers
www.appraisers.org
International Society of Appraisers
www.isa-appraisers.org
National Association of Jewelry Appraisers
www.NAJAappraisers.com
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