diamond appraised for 3X more than I paid

[Merty]

This site is so informative i just had to say something. Without the education I recieved here and on the internet in general, I would not have been able to make such a wonderful purchase. My eyes lit up after my appraisal. Thanks so much to all of you at Pricescope for your information. One other thing: I am trying to insure my loose stone before setting now they say I need the setting valued as well or can I use the receipt from purchase so they know it will be set. Thanks

 

[Dancing Fire]

This site is so informative i just had to say something. Without the education I recieved here and on the internet in general, I would not have been able to make such a wonderful purchase. My eyes lit up after my appraisal. Thanks so much to all of you at Pricescope for your information. One other thing: I am trying to insure my loose stone before setting now they say I need the setting valued as well or can I use the receipt from purchase so they know it will be set. Thanks

IMO...you don't need to insure your stone by more than 15% of the price you paid.

 

[kenny]

Appraisals are 99.9999999% BS.
I really feel sorry for appraisers, since they are not all criminals.

 

[diamondseeker2006]

Under no circumstances should you use that appraisal for your insurance. You will be drastically overpaying insurance premiums. Either you or the insurance company can replace your diamond tomorrow for what you paid or less, unless you bought it second hand.

 

[denverappraiser]

Gosh. And the LEAST prolific poster above has over 15,000 comments.

Do a bit of reading here on what appraisals are and aren't good for. I've written on this as recently as today and I'm not up for doing it again. I do agree with the above that it's highly unlikely that you're doing yourself any favors to use this appraisal for your insurance.

 

[diamondseeker2006]

There are examples of outstanding independent appraisers right here on this forum (like Neil)! Unfortunately, we don't all live close enough to make regular use of them!

I'd contact your appraiser and tell him that you will not be able to use his appraisal because it is for so much more than you paid for the stone retail, and ask him if he will reconsider the value if you provide your sales receipt. If I were to go for an insurance valuation, I'd tell the appraiser upfront what I paid and tell him that I do not want an inflated appraisal. I'd not want the value more than 10% more than what I paid.

 

[Merty]

Well my yearly premium for insurance would be around 50.00 I dont think thats too much even if it appraised at what I bougt it for. Is this not accurrate.

 

[diamondseeker2006]

Well my yearly premium for insurance would be around 50.00 I dont think thats too much even if it appraised at what I bougt it for. Is this not accurrate.

What is the value of the diamond and with what company will you have your insurance?

 

[Christina...]

Well my yearly premium for insurance would be around 50.00 I dont think thats too much even if it appraised at what I bougt it for. Is this not accurrate.

It's not about how much your premium is, it's the fact that if your stone becomes lost or damaged and you need to make a claim the insurance company is going to replace the stone at their wholesale price, or offer you a payout for the same amount that they could replace it for. For example, if you paid $10,000 for the stone but your appraisal says it's worth $30,000 and you base your premiums on the $30,000 amount, then at some point down the road you lose the diamond, the insurance company isn't going to cut you a check for $30,000 because that is the amount you insured it for, they instead will locate a like stone and offer it to, if you have a cash out policy then they will offer you the amount that they could have replaced the stone for. Often times that amount is less than you purchased the stone for initially. It just doesn't make sense to pay higher premiums to receive the exact same level of service that you would by paying less. It may seems inexpensive now, but over time the cost will really add up.

 

[Niel]

On An unrelated note I'm glad you came here did your research and managed to get a fair price for a well cut stone. Its nice to see when people avoid being taken for a ride from brick and mortar or Tiffany like stores