Insurance Appraisal too high??

[that_someone_special]

In August I got my grandmothers lovely 3-stone ring. I was also given the original receipt, original appraisal and AGS stuff . It needed a new updated appraisal per my insurance so I got that done at the time of getting the ring redone.

Now, when I saw the original receipt I about pooped myself. It was EXTREMELY HIGH for the size of the stone. Very Very VERY high. When I picked up the new appraisal I was told, "Well, the price of the ring is actually lower now, so I just kept it at the same amount that the original was at." I shrugged it off... but...

I am concerned that I am over insuring this by at least $15k, which is a much larger premium for me. God forbid that I ever lose or get mugged or anything, I am worried the insurance company won't pay out this ridiculous amount, and I would have been paying the extra premium on this ring for nothing.


1) If something were to happen to the ring, can the insurance company tell me they'll give me way less than it is insured for- just 'cuz?

2) Should I get another appraisal?

Sorry if this is the wrong area for this. This has been on my mind since August.

Here is the ring info again- and I am almost too embarrassed to share what this was bought for/ appraised for:

Center Diamond:
3.18 carats
SI2 (previously noted as an SI1)
I
AGS cut "0"

9.40-9.46 x 5.33 (I think, it's faded, I'm looking at the 01 apprasial for dimensions)
Depth 61.8%
Table 57%
Crown angle 34.4
Crown height 14.8
Pavil angle 40.8
pavil depth 43.0
culet 0.9
Girdle thick % 1.7-2.7

Girdle Medium to Slightly thick
Flourescence None

Side Diamonds (2 of them):
1.46 CTW
SI2
G
AGS cut "0"

 

[Dreamer_D]

Why not get it appraised again but don''t show them the original receipt? Then you will know if it is the going rate. Appraisals are usually inflated over the retail cost by a certain margin anyways. It is normal, but silly. You can call your insurance company to find out the specific wording of your policy.

 

[that_someone_special]

Good idea! For some reason when I had the 09 appraisal done they said I would "save money" if I brought in the original or latest one in as well... lol I wonder if they even looked at the ring now!!

 

[denverappraiser]

Hi Bean,

1) If something were to happen to the ring, can the insurance company tell me they'll give me way less than it is insured for

Maybe. Probably actually. What most insurance companies will do to replace the lost item with another of ‘like kind and quality’ that they buy from a jeweler that they can beat up on price. The definition of like kind and quality is the description in the appraisal that you submit. If they can do it for less than the maximum limit of your policy, that’s what they’ll do. If they can’t, they’ll cash out for the face value of the policy. The details vary from policy to policy but it'll be spelled out in a legaleze sort of way in the contract itself. I second the advice of asking your insurance agent about how your particular policy works. They are NOT all the same.

- just 'cuz?

No. See the above answer.

2) Should I get another appraisal?

Maybe. It might be sufficient to simply talk to your appraiser about their value conclusions. Read the description carefully and ask yourself if there’s enough information there to replace the piece accurately. It should include a scan of the AGS reports or at least a reference to the report number(s), weight, measurements, and manufacturing details on the ring, etc. Photos are very helpful. The value conclusion should provide a budget that’s sufficient to do that.

If you can get adequate documentation out of the person you’ve already paid to write the report and you’ve got no concerns about damage or misrepresentation along the way then I don’t think you gain much by seeking out a new appraiser. Ask them the very same questions you’ve asked us.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[that_someone_special]

Neil- Very good points and information. By original appraiser do you mean the person that appraised it where it was purchased, or my latest (aug 2009) one? I don''t think the last person actually changed anything on the original appraisal. It looks like I paid for an exact replica of the old one, but with the newer date

Does anyone want to guess how much this ring SHOULD be VS. how much it should be? I have some ideas... but it might be fun.

 

[denverappraiser]

I didn’t notice that it’s been since August that you got your appraisal. That’s quite a while to be asking these kind of questions, they surely won’t remember the piece and things may have changed since then but yes it’s the recent appraisal I’m talking about. Give them a call. Did they actually inspect the piece back in August or did they just change the report?

I can’t give you a value without actually seeing the item but this is part of what you’ve paid the appraiser for. You can look up in the database here for offers of comparable stones for sale in the ‘diamond prices’ tool at the top of the page. Even if you have no intention of every shopping with these folks this can be a useful tool for a reality check on prices. Local stores generally cost more than these guys but it’ll get you a place to start in knowing whether the stated price is ‘ridiculous’ or not. The usual standard for insurance valuation is replacement in the local retail marketplace and that’s usually anywhere from 10-50% higher on something like that depending on the details. If you can’t get a straight answer from the person you hired, yes you should hire someone else to do the job but start with that one since, presumably, they’ve already seen the piece and you’ve already paid them.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[tyty333]

Date: 2/17/2010 12:45:44 AM
Author: swedish bean
Neil- Very good points and information. By original appraiser do you mean the person that appraised it where it was purchased, or my latest (aug 2009) one? I don''t think the last person actually changed anything on the original appraisal. It looks like I paid for an exact replica of the old one, but with the newer date

Does anyone want to guess how much this ring SHOULD be VS. how much it should be? I have some ideas... but it might be fun.

I''ll guess just for fun. Your stone looks to be a very good stone and I couldnt really find any well cut stones to compare
with. I''m going to guess about $65k total? I''m guessing $55k for your main stone, about $5.2k for side stones and about
$2.5k for the setting. Its all dependent on your main stone though and I could be really off there...but this was just
for fun so doesnt really matter. You are so lucky to have a family heirloom.

 

[that_someone_special]

Neil- Thank you. Yes, I just wasn''t sure if I was paranoid or not on the price they gave with the appraisial. I figured since they kept the amount the same, it would''ve been "close" to the price... but the more I thought about it, the more unsure I became. I ASSUME they looked at the ring too. I had it in their shop to to be re-shanked and re-tipped at the time of the apprasial too, so I would hope they looked at it

I am going to have to look further into this whole issue.

tyty- Pretty close but a little high... maybe I''m the one that is way off on the price. I am thinking the ring SHOULD be in the ball park of $25-30k for the stone (only after I searched some of the stones in the PS stone list thingy), $5k for the side stones and $1-$2k for the setting.. It''s appraised at.... ahhh this is embarrassing because I know no one in their right mind should pay this... $53k

Which, if my "estimate" is realistic .. is a $16k inflation. To be honest, the ring was purchased in a store that from what i can see DOES have very inflated prices... but.. still.. that''s a lot!!

Thanks for playing the game too