What is wrong with this "appraisal"?

by Admin 16. December 2014 12:12


It does not indicate the weight of the ring, which means we don’t know the actual platinum value.

It describes the color as “L or better”, meaning it could be D, E, F, G, H, I, J, K or L.

It describes the clarity as “SI2 or better”, meaning it could be Flawless (FL), Internally Flawless (IF), Very Very Slight One (VVS1), Very Very Slight Two (VVS2), Very Slight One (VVS1), Very Slight Two (VS2), Slightly Included One (SI1) or Slightly Included Two (SI2).

So in this case, the ring was actually lost, and I was asked to provide a current replacement cost.

What is the difference in today’s market as to the replacement cost of this ring with diamonds from L SI2 to D FL?

$1,180 or $6,350.

What do you really have?

What will happen in the event you have a loss?

If this appraisal had been screened prior to acceptance by the insurance company for scheduling, the client would know their “appraisal” was not adequate.  The jewelry owner could have obtained an accurate appraisal to make sure they were paying the proper premium, as well as being adequately protected. The insurance company not only would be providing better customer service to make sure their client is protected, but also would be assured of a proper settlement in the event of a loss.

In this event I had to make an assumption that the ring weighed 6 grams and, as I had no evidence as to the quality being greater than the L SI2 indicated, I recommended the current replacement cost to be $1,180.

How can you be assured a fair and accurate claims settlement in the event of a loss, if your document doesn’t adequately describe or value what you own?


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