Cost + 30% or Replacement Value for insurance?

[henearly89]

Do I stick to exact appraisal replacement value or provide some padding by going to cost + 30%? Cost + 30% seems excessive, no?

 

[Dreamer_D]

The appraisal usually includes the appropriate padding for insurance purposes. Talk to your insurance comapny and ask them what forumla/methods they use to replace goods if they are lost or stolen or damaged. Ask them what the appropriate value needs to be on the appraisal, they should be able to tell you.

 

[henearly89]

It''s Jeweler''s Mutual. They basically suggested its easiest to use the vendor''s appraisal (equivalent to cost + 30%) but that I could appraise for a lesser value with an independent appraisal by applying on their website (instead of the link on the vendors). It was independently appraised for $1000 less than the vendor''s appraisal.

 

[Dreamer_D]

I believe that JM will not give a cash replacement for losses, so you are looking at a like-kind-and quality replacement through them. I would ask them how they do this. Is it through a vendor of your choice? Can the replacement cost up to the full value of the insured amount? If the answer to both of these is YES and you feel confident that you can find a similar diamond for the value on the independent appraisal (or less) then I would not personally overinsure with the cost + 30% value. But really, the difference in premium is small for $1k annually. If diamond prices fluctuate upewards in the coming few years and you insure for the lesser amount, you could be screwed when it comes time to replace if someting were to happen (ETA Because the insured amount would not longer buy you like kind and quality).