How much to insure for?

[nicktenny]

I''ve read old posts about this, but wanted to get some new opinions.

I''ve had my diamond appraised and it appraised for about 40% more than I bought it for (~$4500 more).

I bought it online, so it was cheaper than if I''d gone to a B&M.

Now, as I get ready to insure it (the setting is another story, but it''s all figured out), I''m not sure how I should go about determining insurance value. Is it possible to insure for an amount in between the two values if it is not a cash policy?

Thanks for your help.

 

[wishinpink]

When you got it appraised, did you get an insurance appraisal? Because there''s different types of appraisals available! Also, was the appraiser an independent appraiser?

It sounds like you may have gotten an overinflated appraisal?

http://www.gemevaluation.com/services.html This site has some information about the different types of appraisals...

Hope this helps!

 

[oldminer]

You have many possible options. SOme folks want the maximum insurance They want to impress somebody or they want to feel super-protected. Other people want the least possible insurance in order to save premium fees, but occasionally having the least amount of possible coverage backfires by not ending up with enough coverage due to upward replacement price moves.

The most prudent way to is to use what I''d term "discount retail" replacement which implies a B&M purchase in a competitive environment. There is still sufficient profit for an insurance company to work out a replacement even if values fluctuate a bit. You save some of the premium fees by not over-insuring in excess. How fine you want to cut the excess down is up to you and your appraiser. Have a conversation and explain where you want to position you amount of coverage, risk and premium, It is very much an individual set of choices although I have suggested the middle path as what I feel covers most people the best.

Thiose folks who have paid a premium for an item bought in a luxury environment usually prefer to keep full retail replacement in the same store as the basis for their coverage. No problem with this as it is what suits their taste the best. Don''t waste money on insurance if you don''t understand that a replacement is never going to be "identical", but only reasonably similar, and of reasonably equal value.

 

[nicktenny]

The appraisal was done by a pricescope recommended independent appraiser. I''ll have them look at it again after it''s mounted and make sure that I let them know that I want the appraisal specifically for insurance purposes and that I don''t want it overinflated.

Thanks for the thoughts.

 

[MMT]

My appraisal came back high also. I got a second opinion and it was high also. I figure it''s probably only going to cost me an extra $30 a year and would give me plenty piece of mind. I also figure I won''t have to worry so much in a couple of years when the value might increase and people are getting new appraisals.