Appraisal for Loose Diamond Retail Value 2x Purchase Price

[Kursor]

I recently purchased a loose diamond from jamesallen.com (H&A 0.96 c, Ideal, G, SI1 rated by AGS) for a little over $5k before tax. Custom band I'm waiting on getting it made locally for $800. I had it appraised locally in the Toronto area by an AGS accredited appraiser for $10,000 retail replacement value I was planning on getting it insured through www.jewelersmutual.com,, but I see no point in paying a premium for $10k if I only paid approx $6.5k for the whole thing (with taxes). From what I read jewelersmutual allows customers to go to the vendor of their choice, so if something were to happen to the ring, I'd just be going back to jamesallen or one of the other online vendors.

What can I do?

 

[Karl_K]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

Talk to your appraiser about getting a more realistic value on the appraisal.

 

[yennyfire]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

Definitely ask for a more realistic estimate. If you plan to have the ring insured, you'll be paying a premium based off of the appraised value, but if it's lost or stolen, they will only give you the replacement value (probably about what you paid) and they won't refund the difference in the inflated premiums...I learned this one the hard way last summer. When I got my replacement ring, I added 10% to the purchase price and we insured it for that amount.

 

[LaurenThePartier]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

We have my ring insured for exactly purchase price, though since it's been almost 5 years, I'm considering having a new appraisal done and updating my coverage. I don't have jewelers mutual, but I would imagine a receipt of purchase would work if you wanted to insure for exactly replacement cost?

 

[em2010]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

We have my ring insured for exactly purchase price, though since it's been almost 5 years, I'm considering having a new appraisal done and updating my coverage. I don't have jewelers mutual, but I would imagine a receipt of purchase would work if you wanted to insure for exactly replacement cost?

I insured my ring at the exact purchase price with my home-owner insurance company. The insurer asked for the invoices as well as the appraisal paper, just to make sure I did not overpay for the diamond.

James Allen is competitive with their diamond prices so I would agree with other's comments that the appraisal price was over-rated.

 

[4cynthia]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

LaurenThePartier, since it’s been almost five years, it’s a great idea to have your ring appraised again. We at Jewelers Mutual recommend getting jewelry periodically re-evaluated to current values and replacement costs and then having your insurance coverage adjusted accordingly. Because jewelry prices generally increase, you don’t want to be caught in a situation where you don’t have enough insurance in the event of loss, theft or damage.

To em2010’s point, over-insuring jewelry is in no one's best interest. But be careful about under-insuring your jewelry, too. Jewelers Mutual requires a current appraisal so that we can provide you adequate coverage for when the unthinkable happens—such as losing your precious item. You’ll have the peace of mind of knowing you have enough insurance to cover the cost associated with replacing the item. Our goal is to return you to the same position you were in before the incident occurred by replacing or restoring your jewelry with the same kind and quality as the original, making up-to-date appraisals and adequate limits of insurance essential.

Cynthia Moschea
Jewelers Mutual Insurance Company

 

[Kursor]

Re: Appraisal for Loose Diamond Retail Value 2x Purchase Pri

Thanks for the suggestions everyone. Once I get the loose diamond set, I'll take it back to the original appraiser (AGS accreditted) and see if they can adjust it to online pricing + slight markup for inflation. I have my doubts about their cooperation though. When i questioned the whopping 2x value, they said they appraise it to what Peoples/Mappins/European jeweler/Birks pricing. ie retail mall pricing. We'll see how things go. Custom band should be ready within 2 weeks.

Can anyone recommend an appraiser in the Toronto area if things don't pan out?