Insurance

[andrew01]

I just bought a diamond for $15K but was appraised at $26K. Is this normal? Will the insurance premium be based on 15K or 26K? Anyone has experience with Statefarm? the reason i am thinking about Statefarm is because i have a homeowner''s insurance with them.

Thanks for your help guys.

 

[Skippy123]

I have State Farm; I go with the price I paid since the appraisals can be a little high. It depends on you but it is reflected in the premium if you go higher. I guess it is all personal preference though. I do know that if you lose your ring they evaluate (based on experience) if they will give you the full amount based on the market. I would check with your agent and see what they advise?? eta: and you might want to ask them those questions.

etaa: you might want to read through this thread by one of the appraisers which looks like it might be helpful https://www.pricescope.com/community/threads/why-you-should-ask-for-a-complete-appraisal.114073/

 

[confusedboy]

I have the same question. Thanks Skippy

 

[bugaboo]

This is my experience - my ER coast $15K but two appraisals were for $47K & $28K. Insurance paid out $17 which is the cheapest quote they got to replace the diamond of the same colour and clairty............I paid preimums on appraisal amount - doesnt matter!!!!!!!!!!!!!! Be very careful. I will be changing insurance agents when I finally purchase my new rock!!! (BTW I am in Australia so things might be diiferent).

 

[hearts-arrows_girl]

I had State Farm and they were able to use my purchase price. When I switched to AAA, (we changed homeowner's policies), they insisted on a Gemologist's appraisal, which made my premium almost $1,000 per year compared to the $795 I paid at State Farm. (I decided not to use them) I only want to insure for replacement cost, since the premiums in Los Angeles,California are the highest next to New York, that I have seen. I switched to an E-ring only insurance thats affiliated with Lloyds of London and am now paying $599 for my annual premium with 10% deductable. All I really wanted was something to take a major chunk off the sting of buying a new ring if I lose this one. I could never afford to replace my ring on my own.

 

[Lorelei]

Date: 4/30/2009 3:37:36 PM
Author:andrew01
I just bought a diamond for $15K but was appraised at $26K. Is this normal? Will the insurance premium be based on 15K or 26K? Anyone has experience with Statefarm? the reason i am thinking about Statefarm is because i have a homeowner''s insurance with them.

Thanks for your help guys.

Yes, inflated insurance figures are usual but really you want to insure close to the sum you actually paid. If anything happened you would receive close to what it would cost to replace the ring, so similar to your purchase price - paying for much extra is a waste of money.