high appraisal value and insurance

[BartSimpson]

i purchased an engagement ring online from uniondiamonds.com for $8245.

it''s an EGL-certified diamond with a solitaire 4-prong setting (i went for the $85 setting bcos my fiancee and i are going to go shopping for the final setting after i propose). here''re the specs for the diamond (according to the EGL certificate):

weight: 1.68 cts
measurements: 7.75 x 7.78 x 4.70
shape/cut: round brilliant
depth/table: 60.5%/55%
colour/clarity: H/SI1
polish: excellent
symmetry: excellent
fluorescence: none
comments: "diascript on girdle", excellent ideal cut

uniondiamonds also included an appraisal with the purchase which only lists that the ring is 1.68 cts, H, SI1 and the measurements but doesn''t mention anything about the cut, polish, symmetry, table percentage etc. the total appraisal value is $10,200 (excluding taxes, based on "current retail value").

i also had the ring appraised from an independent appriaser who''s an M.G.A (alison lebaron, lebaron laboratory, granite bay, ca). her appraisal (according to GIA standards) is as follows:

round brilliant 1.68 cts (7.8 dwts)
colour H
clarity SI2 (compared to SI1 on the EGL certificate)
54% table, 34.5% crown angle, 44% pavilion
ext thin to thin girdle
no cutlet
no florescence
excellent polish/excellent symmetry

she lists the appraised value based on "cost approach to value" (replacement value) as $13,850 (7.75% CA sales tax included). her appraisal obviously has a lot more information than what the jeweler provided me but the appraised value is also considerably higher (even though according to GIA standards, the diamond is SI2 rather than SI1, which is something i expected and even the jeweler told me about).

so here''s the summary so far:

cost: $8,245
jeweler appraisal: $10,200
independent appraisal: $13,850

i''m almost certainly going to insure this ring with chubb. for the $10,200 appraised value, the premium in sacramento area will be $193/year. i don''t know what it''ll be for the $13,850 but i imagine it''ll be around $262 (using $1.89/$100). i''ve a couple of questions about all this:

- first, is such a huge discrepancy between the independent appraisal and the cost/jeweler''s appraisal normal?
- since chubb has a no-hassle cash payout policy, shud i just use the $10,200 appraisal even if it doesn''t have all the details (cut info, table/crown/pavilion angles, etc). this''ll certainly reduce my premiums by $69/yr and a cash pay-out of $10,200 shud be enough for me to buy a similar ring on my own. or shud i go for the detailed but higher $13,850 appraisal instead?
- my fiancee and i are going to have the ring re-mounted in a setting of her liking. let''s assume the new setting costs $1,000 (with new sidestones or whatever). does this mean i shud have the ring re-appraised after having it re-mounted?
- if i don''t get a new appraisal after the re-mounting, how do i have chubb update the official description of the ring in the policy and, potentially, the new value of the ring?

sorry for the long posting but i just wanted to provide as much as detail as possible. thanks in advance for all the answers. this forum has been a great help in all my planning!

 

[pqcollectibles]

Hey Bart!

Uuuhhhhhmmmmm. Put all three numbers on the wall, put on a blind fold, and start throwing darts. The one you hit is the insurance amount. LOLOL

Just Kidding!

There was a discussion this past week about appraisals. There have been several, in fact. You might try searching past threads for a concensus opinion.

My jewelry coverage is as a rider to my homeowner's policy. I have 100% replacement coverage as part of my homeowner's policy. As long as I gave a reasonable purchase price amount at the start, I will get 100% toward the cost to replace any item that is lost, stolen, or gem that is chipped.

Try reading the threads the Search returns and ask the Chubb/insurance rep a few questions. Then you'll know what to do. No need to pay premiums on an inflated value, but you definitely want appropriate coverage.

You will probably need a new appraisal, and higher insurance coverage, once you get the diamond reset as well.

 

[BartSimpson]

thanks for the tips. yeah, i did do an extensive search and have read all the threads in this forum about insurance (especially chubb). but i didn't find any threads that address the following question:

- what to do if u have two appraisals that differ so greatly ($10,200 vs $13,850)... other than getting a third opinion, i guess?

in my particular case, the jeweler's appraisal is lower than the independent apprisal... which is even more perplexing... i mean, i wud've expected the jeweler who sold me the ring to inflate his price a lot (not that i expect tony from uniondiamonds.com to do that - he's the most honest and helpful jeweler i've ever spoken to and i highly recommend uniondiamonds!)

i'll call chubb monday morning and see what their rep says. i'll let u guys know how it turns out. thanks!

 

[BartSimpson]

so i just called chubb. the rep basically said it doesn't matter which appraisal i use as long as the appraisal contains a description of the ring. she kinda tried to push me towards the higher appraised value even though it's 60% more than the retail price! but, in the end, i insured the ring for $10,200 ($194/yr premium). i think that gives me enough buffer to buy a new ring with chubb's cash out policy (in the odd chance that we actually do lose the ring) and not over-insure either.

thank you all for your insights and help!

 

[stephcola]

Just a comment for you to ponder. My engagement ring was stolen this summer. 14 years ago it was insured for an inflated appraisal amount. A year and a half ago, I had it reappraised for more and paid much higher premiums. My ring was stolen in August and my insurance company paid in full - what I thought was a great amount. I am having difficulty replacing what I had - even though my pay out was a higher appraisal number.

Times change , diamond prices change, and I hope you never have to go through what I have. I will tell you that if your ins. co, will let you up your appraisal, it would be well worth it. You will probably never need it...but if you do you will thank me. If my ring wasn't overinsured, I would be ending up with a stone 1/3 of the size. After wearing a larger ring for several years, I will tell you - you won't want to settle for a smaller on. Food for thought.