Blue Nile "fine jewelry appraisal", how accurate is it?

[powernapper]

I just received an e-ring in the mail from BN.
Enclosed is a fine jewelry appraisal, how accurate are these appraisals?

Or are they exaggeratrd?

It was the estimated retail value is 15k.
I purchased it for 10k.

Doesnt smells fishy...

 

[solgen]

Appraisals aren't worth the paper they are written on. Or at least the valuations aren't. It's supposed to indicate the price you'd pay at a retail store but really it isn't an indication of value or worth. To me appraisals are just to make you feel like you got a good deal though I could never see a situation where you'd get that amount.

 

[DeBeersorDeSoda]

Arent they useful as far as insuring the jewelry with homeowners/renters insurance?

 

[solgen]

Arent they useful as far as insuring the jewelry with homeowners/renters insurance?

It depends. They may choose to replace that 1ct G VS2 instead of paying you $10k for it. Afterall, why pay $10k out when they can obtain it for $5k or even $3k? And of course for a policy with $10k coverage so you'll be paying more. So you have to figure out how much coverage you really want.

 

[liaerfbv]

Appraisals aren't worth the paper they are written on. Or at least the valuations aren't. It's supposed to indicate the price you'd pay at a retail store but really it isn't an indication of value or worth. To me appraisals are just to make you feel like you got a good deal though I could never see a situation where you'd get that amount.

This isn't exactly accurate. "Retail" appraisals are typically overinflated values that are generally useless. You want a REPLACEMENT VALUE on your appraisal to submit to your insurance company. It needs to be done by a reputable, INDEPENDENT appraiser who will be very specific about the specifications of your diamond (for example, if you have a WF ACA or an antique old euro cut diamond, it should be noted on the appraisal). This is very very important if you make a claim on a replacement insurance policy (the majority of policies) they will only pay up to the amount required to replace what you have, so it's in your best interest to have the most specific, realistic appraisal in hand. You should also get an updated appraisal done every few years.

 

[Dancing Fire]

I just received an e-ring in the mail from BN.
Enclosed is a fine jewelry appraisal, how accurate are these appraisals?

Or are they exaggeratrd?

It was the estimated retail value is 15k.
I purchased it for 10k.

Doesnt smells fishy...

Then I wouldn't insure it for more than $11k

 

[diamondseeker2006]

I just received an e-ring in the mail from BN.
Enclosed is a fine jewelry appraisal, how accurate are these appraisals?

Or are they exaggeratrd?

It was the estimated retail value is 15k.
I purchased it for 10k.

Doesnt smells fishy...

Then I wouldn't insure it for more than $11k

+1. Assuming you are buying a new diamond from retail diamond seller like BN, the price you paid is exactly what it is worth. You can replace it for approximately what you paid if you need to next week and possibly for months later (diamond prices have been pretty stable the last couple of years overall). If it is insured, the insurance companies usually have arrangements where they can buy for less than you can, so maybe they only have to pay something like $8k for the replacement. That's why it makes no sense whatsoever to have an inflated valuation. See if your insurance company will accept the sales receipt with a copy of the diamond. If they don't, I'd call BN and tell them you want your valuation to match the sales receipt. If diamond prices spike upward, then every few years you can get a new realistic appraisal and increase your insurance coverage.

 

[denverappraiser]

Accurate for what?

The purpose of an insurance replacement appraisal is twofold. First is to define exactly what the item is so that it can be replaced with another of like kind and quality in the case of a loss. What's being defined is like kind and quality. That comes from the pictures, description, lab reports and so on. The second is to set a price that will allow the insurance company to do that replacement. It's an upper limit, not a cash out value. If they can replace it for less, and usually they can, they will.

For the first, BN reports are usually ok. They get a fair amount of the facts like weights and counts, usually include at least one picture, and normally include the lab docs or at least a reference to them. It's up to you to decide f that's enough but just read the thing and ask your self this question – If my insurer were to replace my ring with the cheapest thing they cold find that meets or exceeds this description, am I likely to be happy?

The price they're giving is their estimate of what their competitors might charge to custom make something similar. It's further twisted by the fact that your insurer almost certainly won't be paying that if you ever file a claim. Chances are actually pretty good that they'll go back to BN and pay roughly the same price that you did. What it was provided for was to make you feel good about your purchase.