Hello Fellow PSers,
I have a question about appraisal values. My understanding is that it is common to have inflated appraisal amount and the insurance will be based on that amount versus actual value of the diamond.
I think Diamondseeker mentioned somewhere that she recommends telling the appraiser what we paid and that we do not want an inflated appraisal.
What I'm wondering is how the insurance company will look at that if -God-forbid- we'd like to file a claim?
E.g.
Say the actual price $5,000.
Usually it may be appraised for 8k.
The insurance company knows this and applies a discount to the appraisal value and will try to find something that cost 4-5k.
If the appraisal value is 5k for a 5k ring then won't the insurance company consider 5k as the inflated value and thought that the actual retail value in the neighbourhood of $3k or even lower?
Thanks for the input.
I have a question about appraisal values. My understanding is that it is common to have inflated appraisal amount and the insurance will be based on that amount versus actual value of the diamond.
I think Diamondseeker mentioned somewhere that she recommends telling the appraiser what we paid and that we do not want an inflated appraisal.
What I'm wondering is how the insurance company will look at that if -God-forbid- we'd like to file a claim?
E.g.
Say the actual price $5,000.
Usually it may be appraised for 8k.
The insurance company knows this and applies a discount to the appraisal value and will try to find something that cost 4-5k.
If the appraisal value is 5k for a 5k ring then won't the insurance company consider 5k as the inflated value and thought that the actual retail value in the neighbourhood of $3k or even lower?
Thanks for the input.