I-TEAM: Jewelry Appraisals
WCCO 4
(WCCO) Minneapolis Jewelry can be one of the most expensive purchases people make and its value is measured by money and often emotion.
The I-TEAM discovered that finding out how much your jewelry is worth, may not be as clear cut as you think.
Bill and Rose Perpich have pretty much led a picture perfect life, always protecting prized possessions, but not realizing the importance until last year.
Rose Perpich’s ring, bracelet, necklace and earrings were stolen last year and the couple only received half of what the jewelry was insured for.
It made the I-TEAM wonder how much the priceless pieces are really worth. The I-TEAM took a princess cut, cathedral set diamond engagement ring to four different appraisers.
Yesteryears and Independent Gemological Appraisers are both independent. The ring was also taken to two jewelry stores, Badiner and Bockstruck. All were told an appraisal was wanted for insurance purposes.
The I-TEAM wanted to find out if the appraisals would be similar, but more importantly, if they would include enough information so the ring could be replaced with a similar ring if necessary. The I-TEAM found vast differences and a lack of information.
“As much disclosure as possible should be on the appraisal,” said Darin Kath, the chief operating officer of Jewelers Mutual. Jewelers Mutual is the oldest and largest jewelry insurance company, headquartered in Wisconsin.
“We insure over $1.7 billion of jewelry throughout the country,” Kath said.
Kath said a proper appraisal is key.
“If you didn’t have a very accurate description, you’re not going to get the identical piece,” Kath said.
The I-TEAM asked Kath to look at the appraisals the four jewelers gave. The names of the appraisers were removed beforehand, to ensure they were judged on content and not who performed the appraisal.
Immediately, Kath detected differences, after ensuring the appraisals were all for the same ring.
“There are some pretty flagrant differences on items like clarity and color, which would have a bearing on the retail value,” Kath said.
The appraisals included various color and clarity grades. Bockstruck graded the diamond an “F” on the color scale, which is nearly colorless. That would make the diamond more expensive.
Independent Gemological Appraisers graded it an “H”, which is two shades worse.
There were also big differences in the values. One appraiser thought the ring was worth more than $4,000, while another thought it was worth $2,700.
When asked if that bothered him, Kath replied, “The answer is yes. Obviously when we get a piece to insure, we get one appraisal.”
“It is interesting that you have a vast array of documentation, including the format, from some kind of memo to a very detailed appraisal,” Kath said.
Kath said two of the appraisals the I-TEAM received did not provide enough detail to guarantee the ring could be replaced with one of similar value.
Kath said he would ask for more information from Yesteryears and Badiner Jewelers.
The one from Yesteryears did not include the carat weight of the main diamond, which is key information from an insurance company standpoint.
The owner told the I-TEAM his office mistakenly sent out an incomplete appraisal and wanted to send a completed one. The new appraisal did include more information, but said the ring was approximately 3/4 of a carat, but did not include an exact carat weight.
Badiner did not include a description of what the ring looked like, saying nothing about the cathedral setting and the diamonds set alongside in a channel.
Yesteryears and Badiner also left off the depth measurements, saying it is tough to include those dimensions when a diamond is already mounted. The other two appraisers included the depth measurements.
It is true that it is tough to include depth measurements when a diamond is mounted, but Jewelers Mutual said in order to determine the carat weight, you have to take, or at least, estimate those measurements.
Bill and Rose Perpich’s appraisal papers helped them negotiate more money from their insurance company, allowing them to replace Rose Perpich’s ring. The couple recommends people do more work on the front end.
“I think the lesson is that you need to make sure that you not only have the appraisal but that you talk with your insurance company and find out what’s going to happen in this situation,” Bill Perpich said.
The two appraisals that were considered more complete contained the four Cs: cut, color, clarity and carat weight. The appraisals also included very detailed descriptions of the ring and its value.
Insurance experts said those items are key if you hope to replace your ring with a similar ring.
Anyone can be an appraiser. Insurance companies recommend places that are certified by the American Gem Society, because those appraisers have to pass a test every year to stay certified.
