Insure Appraised amount or Actual amount?

[esguy27]

I''m leaning towards insuring my gf''s engagement ring through Chubb but I have a general question. Should you insure the appraised amount of the ring or the amount that you actually paid? I''m a little confused on which approach to take. Any advice would be appreciated.

 

[Hamster]

Who did the appraisal? If it is a fairly accurate appraisal of what you could reasonably expect to pay if you had to replace the ring, then I would go with that. If you got one of those store appraisal that gives an appraised value 3X what you paid for it (and this is not really an accurate reflection of replacement cost), you will be paying higher premiums based on a higher appraised value.

 

[ScheinerDiamonds]

Insurance companies have to pay you the value or replace it. If the appraisal is too high they will replace it in case lost or stolen.
If the appraisal is higher than the invoice value but within reason go with it. if it is too high ( as the post above says x3) go with the invoice value.
Remember that the premium also depends on the value. No reason to throw away money.
Hope this helps.

Michael

 

[esguy27]

In my case, my appraisal for the entire ring is $11,000 and I paid just under $8,000. I shopped around quite a bit and ended up getting a very good deal on the ring because of it. If the ring were lost, it would be tough to get the same setup for the price I paid for it.

 

[jcrow]

when we got my diamond appraised we asked the same question to the appraiser. they said roughly the following.

"I say to insure it in full. You''re talking about saving maybe about $50 - $100 per year in lowering a couple of thousand."

in our case the appraisal wasn''t EXTREMELY different than what we paid- let''s say it was less than $10k difference.

 

[plg_cp]

In my case, if I wanted to take a rider policy for the e-ring, I asked the insurance company if I HAD to use the value of the appraisal or if I could decide the amount to insure it for. I was told that I had no choice but to insure it for the full appraisal amount. (Meaning of course that they''d be forcing me to pay higher premiums).

Mark

 

[jcrow]

Date: 11/17/2005 8:50:16 PM
Author: plg_cp
In my case, if I wanted to take a rider policy for the e-ring, I asked the insurance company if I HAD to use the value of the appraisal or if I could decide the amount to insure it for. I was told that I had no choice but to insure it for the full appraisal amount. (Meaning of course that they''d be forcing me to pay higher premiums).



Mark

hum. interesting. i wonder what would happen if you had two appraisals with different appraisal values.

 

[strmrdr]

Id insure it for $10400 and review it every 3 to 4 years myself so 11k isnt out of line.

edit:
cost + 30% is how i got the 10.4k

30% should cover the debeers price increases for a few years on anything under 2ct or so...
chubb also will cover over the insured amount if your under insured by a certain percentage but thats more hassle if you have a claim and have to prove its going to cost more to replace it.
If it happens by chance then so be it but I wouldnt be comfortable counting on it when considering the intitial insured amount.