Appraisal and Insurance Question

[patrickryan]

I purchased an engagement ring for $11,061 including taxes ($10090 before). The ring was appraised for $14,992.63. I just purchased Jeweler's Mutual insurance was $236 annually with a $0 deductible, which seems high. Is that normal, or should I have shopped around? Also, does that appraisal seem ok?

 

[denverappraiser]

Insurance rates are usually a percentage of your declared value and are based on your address, your claims history, and occasionally things like your alarm system and the like. 1-2% of the declared value per year is pretty typical unless you're in an extremely high crime area.

There's no way to tell if the appraisal is reasonable or not without seeing both the appraisal and the goods but the first step is to read it and to ask the appraiser specific questions you might have. Their contact info should be in the body of the report. If you're suspecting that they are in error or that they may not be an unbiased observer and they can't or won't defend their conclusions, hire a different appraiser. How did you find the one you used?

 

[diamondseeker2006]

You need to talk to your appraiser about what you paid for your ring. Was it retail? If so, you need it valued at what you paid or not much more, because that IS the true replacement cost. And inflated value only enriches the insurance company and if the ring is lost, that inflated value is not going to do you one bit of good. I would not insure for more than $12k in your case.