Insurance - purchase price vs valuation price?

[claireabelle]

Hello people

I just received a diamond engagement ring and I need to have it insured. Problem is - I''m a tad confused about how much to insure the ring for.

The diamond and setting were both purchased from the same place - a diamond wholesaler in Sydney, Australia.
Upon purchase, I was given a laminated ''Certificate of Valuation'' listing the specifics of the diamonds and setting and a Value price which is DOUBLE the actual purchase price.

The certificate is stamped, signed, dated etc... do I insure my ring for the valued price on the certificate? Or for the purchase price? Somewhere in between? What''s the general rule?

Is it normal for the valuation amount to be so much greater than the purchase price??

Oh, and are there any Aussies out there that can recommend a good insurer?

thanks in advance!!

 

[Deelight]

Personally I would insure it for the amount it would cost you to replace, depending on how long your FI had the diamond before he proposed this figure could be slightly higher then what you paid.

As for an insurance company, depends on what you are after if your after a cash out policy I have found it nigh impossible to find one, Chubb Australia offers a standalone policy for jewelery but the ring must be valued at 25k or more you also need a broker to get you the policy but in my experience most can''t be stoofed. Some insurance companies will replace with like product but it really depends what you are comfortable with.

 

[claireabelle]

thanks deelight,

hmmmm... so my carefully selected diamond could one day be replaced by a Michael Hill ball of frozen spit??

...not good.

I guess I''ll have to get on the blower and see what''s out there.

 

[Lorelei]

Date: 6/4/2008 8:24:59 AM
Author: claireabelle
thanks deelight,

hmmmm... so my carefully selected diamond could one day be replaced by a Michael Hill ball of frozen spit??

...not good.

I guess I'll have to get on the blower and see what's out there.

That is why a good detailed appraisal is so valuable Claire, that way it makes it easier for you to get a replacement of your choosing, from a vendor of your choice, rather than any old jeweller. As Dee says, it is best to insure for what it would cost you to replace, otherwise you are wasting money paying out for a ' feelgood' appraisal.

 

[surfgirl]

You need an independent appraisal - from an appraiser who does not buy/sell jewelry or stones. You''d want it to be at least covered for the amount you paid for it, but there is no way it''s worth twice what you paid for it. Otherwise that would have been the cost. Make no mistake, nobody''s giving anything away for 50% off. It''s all about profit. I''d find a well regarded independent and let them appraise it. It''s possible it might cost a bit more to replace, but not twice as much. Good luck!

ETA: You might do a search for the stone price alone on the top of this page and see what comparable prices are for the grade of stone you have, just to see in USD, what it would cost...

 

[Deelight]

Date: 6/4/2008 8:24:59 AM
Author: claireabelle
thanks deelight,


hmmmm... so my carefully selected diamond could one day be replaced by a Michael Hill ball of frozen spit??


...not good.


I guess I''ll have to get on the blower and see what''s out there.

LOL I used that same reference when I called around I am sure they thought I was a mad women I was adamant that I would want to either pick my own stone or cash out. Some will offer cash out IF their valuator deems it cannot be replaced but you can''t specify that in your policy it can only be determined at the time of the incident, you possibly want to check as well whether you can use your choice of vendor.

I suggest making a list of things you definitely want from your insurance and make sure to find one that will fit the bill also be SUPER picky on the details of your stone not just clarity, colour and shape list the numbers, inclusions etc I think the more you list the harder it will be to find an exact replacement and therefore cashout may be an option.

Decent jewelery insurance here is hard to find

 

[claireabelle]

thanks for the advice guys: first step is just to have it appraised...