Interesting conversation with the Insurance Guy

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dwcal

Senior member
Jul 21, 2004
765
0
0
Originally posted by: Jzero
You do realize that the price of diamonds is almost entirely based on the health of DeBeers?

You're right about that. The only way to get people to pay $$$$ for new diamonds is to stop people from ever reselling old diamonds, hence the "diamonds are forever" crap. If you ever tried to sell that $12000 diamond, I think $5000 sounds about right for what a wholesale jeweler might pay.

BTW :thumbsup: to OP about getting the stone for the ring as a family heirloom. I have my grandmother's ring too, and I'll *never* buy a new diamond.
 

dxkj

Lifer
Feb 17, 2001
11,772
2
81
Originally posted by: kranky
Originally posted by: dxkj
I got a REAL appraisal from a jewler, and Insured it for THE AMOUNT OF 12,000


Not for the amount of 5,000. If it is lost or stolen, they will send me 12,000 because that is the amount Ive been paying for it...

I don't want to beat a dead horse, but the key point I've tried to make is that the amount of insurance you paid for does not matter. All that matters is what it would cost the insurance company to replace the item, and that's all you're going to get. So a very detailed appraisal is critical.

Of course, I hope that situation never comes up. But people should be prepared.


? I really dont get it, so if the insurance company says "Oh, I have connections in South Africa and can get the diamond for $200, that is all you get, even though I will not share my connections, and it is obvious you cannot buy it for less than 12,000, tough luck" ?

I have a hard time buying that.. heh
 

kranky

Elite Member
Oct 9, 1999
21,014
137
106
Let's take a basic example. You buy a diamond ring for $1,000. Your receipt says "1/2 carat round cut diamond". You insure for $1,000, and the ring gets lost. As far as the insurance company is concerned, if they can find a 1/2 carat round cut diamond for $500, you'll get $500. That's what it will take to make you "whole" in insurance talk. You might say your diamond was a spectacular example, but you have nothing to back it up.

On the other hand, if you have an appraisal from a member of the GIA, that specifies that your 1/2 carat diamond is VVS2 clarity, D color, round ideal cut, Depth 60.8, Table 53, blah, blah, blah, then your insurance company is going to have to pay for what it costs to replace a diamond with those characteristics. That may be $1,000. They won't be able to point to a low-end diamond as a comparable item, and give you a low price.

You can insure something for a billion dollars, but if you make a claim they only have to pay you what it's worth.

It's no different than a car - if you put a bunch of expensive mods on your car and it gets stolen, and you can't prove you modded it, they aren't going to pay you extra for the mods just because you claim the mods were there. They are going to pay you the value for the car based on the items it came with from the factory - nothing more.
 

jadinolf

Lifer
Oct 12, 1999
20,952
3
81
Originally posted by: iamwiz82
Originally posted by: AdamSnow
Originally posted by: LikeLinus
Originally posted by: BlueWeasel
$12K on an engagement ring...are you nuts?

Uh my wife's ring cost that much. You'll purchase a car that cost 20K and last 5 years...but you won't spend 12K on a ring that will last a lifetime and never depreciate?

I love my Fiance... she didnt want an expensive ring, so that we could put more money towards our house and our future...

$12,000 on an ENGAGEMENT ring is a total waste of money.

Thats what I say about a $20,000 Neon ;)

Different strokes for different folks.

A Neon is 20K?

Unpossible.