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Lower appraisal of ring to reduce insurance premiums?

Behacad

Shiny_Rock
Joined
Sep 18, 2012
Messages
102
I bought a ring for 10,000$. It was appraised professionally at 20,000$. I know I got a good deal, but 20,000$ is steep and my understanding is that appraisers always appraise at nearly double value. I now pay 300$ in insurance premiums and cannot get lower than this despite shopping around (values are not exact). Could I get the ring re-appraised by someone to achieve a lower appraisal (e.g., 15,000$) to reduce my insurance premiums? Would this be a bad idea?
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
8,747
Call your appraiser. The value conclusion on the appraisal for most insurance type documents is an estimate of what it would cost to replace the item with another of like kind and quality in the case of a loss. Is it accurate? Usually, you can shop easily enough so you already have a pretty good idea of what's reasonable. If you can replace it for $10k, chances are good your insurer can too. Maybe less -They hire teams of professional shoppers and they really do know what things cost. If they can replace for less than the face value of the policy, that's what they'll do, and it does you no favors to have a higher limit (as you clearly are discovering). On the other hand, if it truly would cost $20k to replace, that's probably the limit you want to insure for.
 

Gypsy

Super_Ideal_Rock
Joined
Aug 8, 2005
Messages
40,198
I'd do my own snooping to see what the retail replacement value is. Then call the appraiser and tell them that you want a real value, not an inflated one.
 

Lookinagain

Brilliant_Rock
Premium
Joined
May 15, 2014
Messages
1,005
I've asked both jewelers and appraisers to give me replacement value appraisals, not retail value. One of the jewelers I've worked with gives me both. They know I want it for insurance purposes and they know that I know that my insurance company will only pay me for what a replacement will cost, which will not generally be the retail value. I really have no use for the retail one, as I know that is inflated, but they give it to me anyway. We both know that I'm never going to pay retail or insure it for that amount so it's a waste of paper, but as long as I get the one for replacement value I can insure it for that amount and not feel like I'm over paying on premiums.
 

Behacad

Shiny_Rock
Joined
Sep 18, 2012
Messages
102
Thank you everyone! If anyone has any additional thoughts let me know, otherwise I will try to find an appropriate appraiser.
 

Diamond_Hawk

Brilliant_Rock
Trade
Joined
Apr 8, 2014
Messages
1,221
Do make sure you consider not only 'typical' insurance companies from whom you might get your car or house insurance, but jewelry specific insurers. There have been a lot of people who have found their typical home-owner's insurance rider lacking when the time comes to actually replace a damaged or lost piece of jewelry.
 

diamondseeker2006

Super_Ideal_Rock
Premium
Joined
Jan 11, 2006
Messages
55,631
Was the ring purchased in the last year or so? Was it bought new at a retail price? If so, then you need to provide the appraiser the sales receipt and tell him or her that you wish the appraisal to show the TRUE replacement value which is the price you paid. No way on earth I'd pay high insurance premiums due to a grossly inflated appraisal. Those are worthless. Actually, the jeweler you bought the ring from should be more than happy to provide you with a valuation to use for insurance.
 
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