Appraisals

[Dakota]

For the sake of an insurance policy, how many different appraisals should you get to determine worth? I just want to go with two, but friends tell me at least three.

 

[oldminer]

A single report performed by an unbiased and experienced expert is all you need. Appraisals are "opinions of value". Getting multiple opinions will not provide more factual basis or point out the best and most correct result. How would you know which one to select as "correct"? One is what you need. Just choose the appraiser based on their advertised knowledge, experience, word of mouth reputation along with some determination of fairness in their fee.

 

[rubybeth]

Just one. Holy cow, some people get THREE? That's nuts. Listen to Oldminer (he's a very well respected appraiser himself, btw).

And don't get one of those price inflated feel good appraisals. You want an accurate evaluation for replacement purposes, but not a value that will make your insurance premiums crazy. Keep in mind that, if your piece is ever lost/damaged, your insurance company works with the vendor to pay even less than you'd pay. Also, make sure the appraisal notes any specific branding (Whiteflash Hearts & Arrows, etc.) and that you can use the vendor of your choice for replacement, so you can get the same piece.

 

[tyty333]

Just one. Holy cow, some people get THREE? That's nuts. Listen to Oldminer (he's a very well respected appraiser himself, btw).

And don't get one of those price inflated feel good appraisals. You want an accurate evaluation for replacement purposes, but not a value that will make your insurance premiums crazy. Keep in mind that, if your piece is ever lost/damaged, your insurance company works with the vendor to pay even less than you'd pay. Also, make sure the appraisal notes any specific branding (Whiteflash Hearts & Arrows, etc.) and that you can use the vendor of your choice for replacement, so you can get the same piece.

Ditto rubybeth above...

 

[denverappraiser]

One. Maybe zero. It depends on what you’re trying to accomplish. The purpose of an insurance type appraisal is to define exactly what the item is and to provide for the funding so that it can be replaced with ‘like kind and quality’, or words to that effect. Jewelers will often provide paperwork in the sales packet that does this and that leaves two issues on the table:

1) Seller supplied documents are often inadequate in terms of the descriptions, photographs, grades of materials and so on. Again, the purpose is effectively the purchase order for the replacement in the case of a loss and you want it as detailed as possible.

2) Value conclusions can be unreasonable. Sellers have an incentive to put high values on their things even though this has no effect on the company’s behavior in the case of a loss. They’ll pay what they must to replace it. Nothing more. Inflated values raise your premiums but nothing else. Not surprisingly, insurance companies tend to be happy with this. Jewelers like it because it makes them look good. It's YOU who should be concerned.

This isn’t rocket science. It’s usually just a matter of doing the work. That said, often people seek out appraisals on new things for reasons that have nothing to do with insurance. Did they get what was represented? Did they pay an appropriate price? Are there any material or craftsmanship defects? These are important sorts of questions (there are others) and the conflict of interest is a problem for both the seller and their competitors. By all means ask, but these sorts of things normally aren’t part of the insurance issues. Mostly the key to getting good value out of your appraiser is to choose your expert wisely, ask what you want to know, and respond accordingly. ‘2 out of 3 gemologists surveyed’ isn’t a very good strategy. Going with ‘1 out of 1 EXPERTS consulted’ is a much better plan.

 

[Bron357]

As the experts have said, you want an appraisal that accurately states your ring. The purpose of insurance is to replace your lost, damaged, stolen item and insurance companies will always endeavour to get the cheapest replacement they can within the parameters of the stated specifics. To my knowledge, unless you have a very specific heirloom setting with a rare old cut diamond (for eg) you will always get a replacement ring, or diamond and not the money. Insurance premiums are paid on the sum insured, so while you might "feel special" holding that valuation that says you ring is worth $20,000, you'll be paying hefty premiums on $20,000. And if the insurance co can get a similiar replacement ring for $8,000, you'll be getting that ring. And re insurance, read the fine print. For eg You may not be covered for theft unless there is physical evidence of a break in. You might not be covered for damage ie chips only for total loss. You might not be be covered for loss while travelling internationally. Trust me, insurance companies are not known for their ease of making claims, to the contrary they love you for your premium payments. They make their money from premiums, not paying out claims!