Is an independent appraisal required?

[JoeA]

I am about to buy an engagement ring from a dealer in my area. The diamond comes with a GIA certificate, and the whole ring will be supplied with an appraisal from the dealer.

I am a rookie at this so this may be a really dumb question. Is it important to have another appraisal performed by an independent source?

Thanks for your help!

Joe A.

 

[dimonbob]

An appraisal written by the jeweler that sold the diamond is not a true appraisal. The insurance company will take it but if you run make a claim using that appraisal you might run into some problems.
According to USPAP which is a book of rules for professional appraisers, an appraisal cannot be written by the same person or company that sold the property. They can write something similar that states the actual price paid for the item but not the "estimated replacement value".

I would take it to an independent appraiser. You should end up with something completely different. A correct appraisal is not a one or two page document with a description and a dollar figure.

 

[barry]

Definitely go to an independent appraiser.

There are many B&M jewelers out there
writing their own appraisals on their diamond sales
and assuring customers that it's OK.
OK as long as you never have to file a claim.
If you do have to file, you will run into
problems with your Insurance company and wind
up with a settlement that will greatly aggravate you.
For the money you're spending on the diamond and setting,
it makes sense to spend the few extra bucks
on independent appraisal and do it right.

Barry
www.superbcert.com

 

[JoeA]

Thanks a lot for your help!

Joe A.