Insurance / appraisal help

[breanne]

So my ring was appraised at 13k more than what I paid, but I already purchased insurance for the lesser amount. I'm within the 10 day time frame limit to present the information to the insurance company about the diamonds specs (I haven't submitted anything yet, just purchased the premium based on what I paid), should I see about changing my premium, or keep it as it?

 

[newjourney]

Appraised values are typically higher than your purchased price. If you choose to insure at the appraised value, it doesn't necessary mean your insurer will spend that exact amount to replace your ring if there are like ones available for less.

 

[diamondseeker2006]

So my ring was appraised at 13k more than what I paid, but I already purchased insurance for the lesser amount. I'm within the 10 day time frame limit to present the information to the insurance company about the diamonds specs (I haven't submitted anything yet, just purchased the premium based on what I paid), should I see about changing my premium, or keep it as it?

Unless you like to overpay, no, don't increase the insurance value and pay a higher premium.

Did you not provide the information on how much you paid to the appraiser? On one of your previous threads, I told you that you have to tell the appraiser how much you paid and that you want the appraised value to reflect the retail price that you paid. An inflated value is meaningless and only enriches the insurance company.

Call the appraiser, get the value changed to what you paid. Is your insurance not allowing you to just provide the sales receipts and diamond grading report? If so, that's all you need.

 

[breanne]

Could I just give the appraised amount at 23k, and keep my premium at 11k? Or do they have to match.

I could provide the receipt, but it doesn't have all the fine details of the diamond like the appraisal.

 

[denverappraiser]

Call your appraiser and discuss the matter.

 

[diamondseeker2006]

Could I just give the appraised amount at 23k, and keep my premium at 11k? Or do they have to match.

I could provide the receipt, but it doesn't have all the fine details of the diamond like the appraisal.

As Neil said, go back to your appraiser. You need the value to reflect the amount you paid so the insurance coverage will match the numbers on the appraisal if that is what you want to use instead of the sales receipts. It's best to tell them up front, but hopefully he or she won't mind making the change. If you bought retail, what you paid is true replacement value.

 

[breanne]

They'll change it! Woo

 

[breanne]

Lets say in the event something happens to my ring, and the insurance cannot find a replacement for less than what it's insured for, do you wind up paying the difference? How does that work?

 

[diamondseeker2006]

Lets say in the event something happens to my ring, and the insurance cannot find a replacement for less than what it's insured for, do you wind up paying the difference? How does that work?

I am glad they are willing to change the value for you!

They may spend up to what it is insured for, and some policies include a little inflation protection so they may pay more. But say in 5 years prices have gone up 10% and you have not increased the insurance and they will only cover the original value. Then yes, you likely could pay the difference if you wanted . Some people try to get them to do a cash payout so they can upgrade more or choose a different diamond shape or setting. But hopefully you will never have to make a claim! Just so you know, diamond prices are not always going up. Many diamonds purchased 3-4 years ago cost less today. If you want, you can come here every couple of years and check diamond prices here under Resources/Diamond Search. You will see a range of prices for stones that have the specs of yours. Just look mid to upper range, but not the highest prices. If prices have gone up say 15-20%, then I would consider getting an updated appraisal, but you will have the exact same issue you had this time. Hopefully you can print out some comps and just ask this same appraiser for a realistic updated value.

 

[breanne]

Thank you so much! I just asked if they'd use the purchase price, with all the other information about the diamond/setting that was written on the appraisal. I'd be happy that way, happy to pay the premium, happy that should anything happen, it could be replaced at that amount. I don't think I got the greatest deal, and I don't think it was overpriced, I think I paid exactly what I should've given that I didn't shop at brick & mortar, and did a little homework.

I tried explaining to my boyfriend why it didn't make sense to purchase a higher premium, and in discussing it, it further made sense to me. Never will my diamond be worth 24k, ever, yes maybe in a retail setting, but my ring isn't Cartier or Tiffany, so it wouldn't be replaced that way. So, yes maybe there might be variance over the years, higher or lower, but I really think 11k is the right amount of insurance. I really appreciate your help, thank you.

 

[flyingpig]

The end is near. I hope you finally get to enjoy your ring without any worry.