Diamond Ring Appraisal Price

[idhntr]

I purchased an engagement ring and it came with an appraisal with it. The appraisal is 2.8X the amount paid, so I am completely satisified with that. For insurance coverage, should I get an independant opinion? What does everyone else do reguarding this situation?
Thanks for the help.

 

[hoorray]

If you insure the ring for the appraised amount, you will be over paying in premiums by 2.8x. Most insurance companies retain the right to replace or refund at their descretion. (Chubb is an exception to this with their refund option). With insurance companies' buying power, they will be able to replace it for less than you paid or at the most, around what you paid. But, since they charge a $/$$ value insured, you will be paying a premium based on 2.8 times what you paid if you use the current appraisal.

I would talk to your insuance and see if a receipt is enough. If not, then I would get an independent appraiser to give you an appraisal at a reasonable replacement value, not retail replacement. Insurance companies do not pay retail. My company let me add a few thousand to what I paid on my internet purchased stone so that I have a buffer. My appraiser asked me what type of value I wanted him to give (internet, retail, reasonable replacement, etc.) Pick something reasonable and have your premiums reflect it, is my advice.