Just heard from the appraiser...

[Garysax]

And apparently I'm going to be paying more for insurance than I thought! The stone I showed in this thread and bought appraised with for more than double what I paid. I was shocked! I can't wait to get it set in the TR-105 and see it in person, I hope it blows her (and me) away.

Besides just posting because I'm excited about the news, I was actually curious how everybody's appraisal values have generally gone around here--I suspect that since there are so many cut nuts on here buying online w/excellent prices there is quite a bit of this kind of thing. Anybody else shocked by the appraisal?

 

[Hest88]

That''s actually quite typical---and it does the consumer a disservice. When appraising for insurance purposes, the appraiser should quote a figure that''s closer to an actual replacement cost otherwise you''re shelling out quite a bit more for insurance than required.

 

[Garysax]

Date: 2/1/2006 6:45:48 PM
Author: Hest88
That''s actually quite typical---and it does the consumer a disservice. When appraising for insurance purposes, the appraiser should quote a figure that''s closer to an actual replacement cost otherwise you''re shelling out quite a bit more for insurance than required.

True--I could see this especially be a problem if you had a much more expensive stone than I do. For me, it''s a pretty insignificant difference on insurance but as the size and expense of the diamond increases it could be a problem.

 

[ChargerGrrl]

garysax- you'll also note that WF's letter of verification that comes with your stone/ring will probably list a higher amount. Mine for my 1.42 princess did! The appraisal "consulation" that I obtained after I got the finished ring also came to the same conclusion.

I ended up insuring it for a bit more than my FI paid for it but certainly much less than the "inflated" amount. Reason that I know so much about all these "amounts" is because the deal was that I would pay for insurance if we didn't go thru his homeowners (I wanted Chubb!)

If anything, it should give you some peace and comfort that you got a great deal.

 

[esguy27]

Hest is right, it is not necessarily a good thing to have it appraised for so much higher than what you actually paid. When I took the stone I bought in to an independent GIA appraiser that I found through PriceScope, he told me that there is a factor applied during the appraisal process. The factor can range from 1.1 to 2.0 depending on where you bought your diamond from. The higher factors should be used when you''ve bought your stone from a high end retail stone (ie Tiffany''s) and the lower factors when you''ve bought online.

In the end, you just want to make sure it''s appraised for at least what you paid. The higher it gets appraised for, the more you''re going to have to pay to insure it. Of course it''s nice to say your diamond appraised for twice what you paid, but other than bragging rights, the only other good thing about it is that you''d get a bigger payout should you lose the ring. Otherwise, you''re just going to have to pay more for insurance.

 

[Modified Brilliant]

Date: 2/1/2006 6:40:48 PM
Author:Garysax
And apparently I''m going to be paying more for insurance than I thought! The stone I showed in this thread and bought appraised with for more than double what I paid. I was shocked! I can''t wait to get it set in the TR-105 and see it in person, I hope it blows her (and me) away.

Besides just posting because I''m excited about the news, I was actually curious how everybody''s appraisal values have generally gone around here--I suspect that since there are so many cut nuts on here buying online w/excellent prices there is quite a bit of this kind of thing. Anybody else shocked by the appraisal?

This thread from last week has some good advice from Sue Fritz of Jewelers Mutual:


https://www.pricescope.com/community/threads/jewelers-mutual-claims-handling.38925/


[url=http://www.metrojewelryappraisers.com]www.metrojewelryappraisers.com[/URL]

 

[jaz464]

I paid $20k for my diamond and it appraised for $30K. I chose to insure it for much closer to the amount that I actually bought it for, plus the setting cost (total insured amount $25K). I wouldn''t insure it for too much over what you paid for it. Just have it reappraised every few years so that you are always covered, as the price of diamonds increases.

 

[sfritz]

Overinsuring isn’t in anyone’s best interest. Ask your appraiser about the difference in values.

There are times when a higher appraisal value is appropriate. Consider a situation where you purchased the diamond online or in a reduced-price sale. The appraiser may have established the diamond’s value based on the retail price for a similar diamond in a bricks-and-mortar store in your area under normal conditions. That’s an acceptable reason for the value to be higher than the purchase price.


If the ring is lost or damaged, you may choose to replace the item in a retail store where you had it set, rather than buying the diamond online again. If you purchased the item at a reduced-price sale, that price would not be available to you on a regular basis.

If enough time has elapsed between when you purchased the diamond and when it was appraised, the current value may be higher due to recent price increases in the diamond market.

I hope that helps. The bottom line is that you should ask your appraiser.

Sue Fritz
Jewelers Mutual Insurance Company

 

[Rod]

This happened to me as well. The appraisal, while very comforting to know my stone was high quality, showed a value significantly higher than I knew I could replace the entire package for. So, I just bought less insurance. You don''t have to insure the stone for the appraised value. You just need to buy enough insurance to know you could replace it if you needed to.

Good luck and congratulations on getting what will obvisously be an incredible stone!

 

[Iceman]

GarySax,


Take the receipt to the insurance company what you paid for the diamond and have them add a value % increase each year for inflation 1 or 2%.

Worth has a lot of levels and the one you got on your appraisal you will never sell it for that and get that money.


If you lose the diamond the insurance company will call a cutter to replace it for less then you paid for it. All they are obligated to do is replace like kind for the best deal they find.

So think about what I have said everytime you right a check to the insurance company for $$$$ on that ring.

I get calls all day for insurance replacements, I know how it works and so does the other people here with the same advice.

Money is hard to come by for the working man , be smart with it.

 

[Tacori E-ring]

my e-ring appraised for 30% more than he paid for it.

Funny store, I posted this in another thread but no one ever responded, FI and I were at dinner and overheard the table next to us talking about her ring (she must have just got engaged). She was with her mother and grandmother. Anyways, she got so excited and said that "we were so happy because it appraised for $100 more than he paid for it!!!" FI and I were shocked! I didn''t know that was possible. Our appraisal fee was MORE than $100. I guess they should have visited Pricescope!!!!