insure for above or below paid price?

[kong]

I know there''s a lot of threads on insurance, but I still haven''t found a clear answer. I bought from a family friend who said a retailer would charge at least 20% more than he charged me and that it would appraise for 20 to 30% more. He advised me to insure it for at least 15% more than I paid.

I''ve had other people advise me to insure it for less than I paid if I have the GIA statement. Because the insurance company will replace using the GIA statement as a guideline, not the price I paid. So I''m thinking about splitting the difference and just insuring it for exactly what I paid. What to do?

Thanks.

 

[neatfreak]

You need to insure it for the amount it would ACTUALLY cost in the real world to replace. So considering you bought it once for price X, I would insure it for price X, otherwise you are paying premiums you will never see a return on. Just make sure that you get it reappraised every few years and up the insurance as inflation does it''s thing.