insurance value question: paid vs. appraisal value

[Kissmark]

Hi I just purchased a diamond pendant from whiteflash and the amount that I paid (the listing price) and the appraisal value that they sent me are different. The appraisal value is about 1600 more than what I paid for. My question is when insuring the piece, should I go with the amount that I paid for or the appraised value? Obviously the value appraised is higher and hence I will receive more cash in case anything happens, but at the same time it means higher premium as well. Is it just a matter of personal choise or is it more advisable to go with one or the other? thanks!

 

[neatfreak]

You won''t necessarily receive more cash if something happens, but you WILL pay more premiums. The insurance company likely will only give you the amount of $ it actually costs to replace the item, they won''t just hand out an extra $1600 because you claim it was worth that. Thus, it usually makes more sense to use the real purchase price and then update it as inflation takes ahold.

 

[Kissmark]

Date: 8/26/2007 7:47:21 PM
Author: neatfreak
You won''t necessarily receive more cash if something happens, but you WILL pay more premiums. The insurance company likely will only give you the amount of $ it actually costs to replace the item, they won''t just hand out an extra $1600 because you claim it was worth that. Thus, it usually makes more sense to use the real purchase price and then update it as inflation takes ahold.

I am using Chubbs, and my understanding is that they will give out cash payment for the amount that I claimed. They accept either receipt (which states the amount that I actually paid), or appraisal report. Or am I misunderstanding? thanks