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Advice on high appraisal from IGI

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dageman

Rough_Rock
Joined
Dec 16, 2007
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49
Hi everyone

The setting came in from Tacori last week and I had the stone set, and it looks wonderful (in my humble opinion). I think she will love it. Pics soon to come... but anyways my jeweller sent the finished product to IGI for an appraisal for insurance purposes and it came back valued at $20,000. I was shocked as I only paid $10,400 for everything once it was all said and done. Mind you I did get a decent deal because I paid cash for the stone (saving me 13% tax) and the Canadian dollar is good right now so the setting was a bit cheaper than it would have been. But still actual replacement value is probably in the $14K range (based on stupidly high B&M retail diamond prices haha).

I am concerned that my insurance premiums will be jacked up because of this and I am looking for some advice. Should I have the ring appraised again by another appraiser? What are the odds that this second appraisal will be closer to the actual value? Can you "suggest" to an appraiser to be a little more conservative with his/her apprasing, or is that a faux pas?

Thanks in advance
 
Can you just submit your receipts as the value? You might be able to get a lower appraisal as well.
 
A super high appraisal if what we call a"feel good" report. It will waste your money for needless premiums. Use your receipt or obtain a report which takes into account some realistic number closer to the actual price paid. Overpaying for insurance will not do you any good.
 
Makes sense David, it is what I was thinking in the first place.

Im just a little stunned that they would blow away the actual RETAIL (read: already inflated) by so much. Is this a common occurrence?
 
Also how often will insurance companies accept the receipt as a valuation? I am thinking of going with State Farm. Anyone have experience with what they require?
 
I totally agree with David, and I have used sales receipts many times to insure jewelry. I''d never pay inflated premiums.
 
The appraiser is someone who should be working for YOU, not for the jeweler. Hire your own. By all means discuss your concerns with them.

That document is doing you no favors and you''ll be paying for it forever. Sometimes ''free'' can be terribly expensive indeed.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver
 
Thanks for the advice Neil. I will look into using my own appraiser. And here I was thinking "Oh wow, I get a free appraisal out of the deal, save myself some time and money"... little did I know...

Now to try to find a reputable appraiser around here...
 
Date: 2/1/2008 3:10:16 PM
Author: dageman
Makes sense David, it is what I was thinking in the first place.

Im just a little stunned that they would blow away the actual RETAIL (read: already inflated) by so much. Is this a common occurrence?
Click to expand...
common for IGI yes.
one of the reasons I dislike IGI.
Now picture the poor sucker that falls for the trap of buying a ring thinking they are getting a bargain because the seller kept on pushing the "appraisal" amount on too them during the sale.
 
Date: 2/1/2008 3:47:12 PM
Author: dageman
Also how often will insurance companies accept the receipt as a valuation? I am thinking of going with State Farm. Anyone have experience with what they require?
Click to expand...
state farm will bind a policy with an appraisal that says: ".25ct diamond gold ring $1500" then when it comes time to a claim give the policy holder $300 for the cheapest .25ct gold ring they can find wholesale.
 
Thanks for the list Neil.

Looks like I better find an alternative then.
Either that or have the new appraiser write out a very detailed description of the setting and diamond and get that exact description right into the policy.
 
Date: 2/1/2008 11:35:16 PM
Author: dageman
Thanks for the list Neil.

Looks like I better find an alternative then.
Either that or have the new appraiser write out a very detailed description of the setting and diamond and get that exact description right into the policy.
Click to expand...
With pictures.
No matter who the insurance company is that is a very very very good idea.
The more you can paint them into a corner and drown them in paperwork the better off you are.
I showed a couple jewelers the appraisal(sale report is a more accurate term because it came from the seller) that came with my diamond from GOG and they about had a stroke trying too make head or tails of it.
That is good because it increases the odds of a settlement in my favor when the claims adjuster gives up trying too figure it out.

I have ran into this a ton of times in the computer field when dealing with insurance companies for clients with specialised systems and servers.
The claims adjuster does not have hours and hours to spend on the claim process.
The offers went from totally unfair to reasonable in 15 min on the phone and more often than not they told me too write up what was needed and a check was cut minus the deductible based on my quote.
In the case of jewelery this would be your appraisal report and your appraiser if needed helping to get you a fair settlement.
 
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