Whats the deal with inflated vendor appraisals?

[512BB]

I just got my ring today from GOG, which comes with an appraisal from them. The appraisal is very nice to have, as it has all of the information on it, however I''m confused about the replacement value in it. The replacement value is $5,000 above the invoice price. I wouldn''t have a problem with this, except that I''m going to get insurance on it, and the difference in the price of the quote from Jeweler''s Mutual is about $60 between the two values. So why is there an inflated appraisal included? Why can''t that just say what I paid for the ring? And can I just get the insurance on the value I paid, or do I have to go with the appraisal value? I intend on getting an independent appraisal anyways, but what can I do about insuring it before I get the appraisal?

And don''t take this as being unhappy with GOG. They have been awesome through the whole process, I''m just curious about the whole appraisal thing.

 

[missydebby]

Congrats on your ring! I''m also curious about this question.

 

[researcher]

Keep in mind that you may have to replace your stone with a local B&M vendor. Insurance policies differ based on their replacement policies. If you had purchased your stone from a B&M, it likely would have cost the extra money (or close to it). That being said, you can insure your ring for whatever amount you''d like. If you don''t want to insure it for more than you paid, just submit your receipt to the insurance company. Keep in mind that they will consider a replacement based on the cost plus color and clarity. They won''t consider cut as important as you, and will thus find you a "comparable" stone in your price. What I did is ask an independent appraiser his opinion on my stone, and what he felt would get me a truly comparable stone. I also wrote specifics into my insurance policy, such that I either get the cash or get to choose the vendor. I also shopped around, and learned that getting jewelry insurance through the same company we use for car and home insurance was much cheaper than some of the other companies.

Hope this helps!

 

[missydebby]

Reasearcher, that''s a fantastic answer

 

[512BB]

Very good point. However, in the pamphlet from Jewelers Mutual, they say you can use whatever vendor you want to take care of fixing or replacing the ring. But I guess the best thing for me to do is get an independent appraisal and figure out how close that is to the GOG appraisal.

 

[arjunajane]

Whether you can insure it for the value you paid, or only the appraisal value, or something else - is up to your individual ins. co. and will vary. Best to ask advice from J.Mutual on that question and seek the answer in writing.

However, the info I''ve received from appraisers on PS in the past on this question, which I believe makes good practice - is to insure it for halfway between the two values. TBH, a $60 premium increase for another 5k of cover is very minimal (I''m assuming you''re speaking annually?).
If you go with the "half way between" value, this will accommodate potential price increases in diamonds in the coming future, so you don''t need to worry about adjusting your policy right away - and depending on the nature (fine print) of your policy you could end up with a "buffer" you are grateful for, in a replacement scenario.

I''ve always found GOG''s appraisals extremely comprehensive and detailed, along with the lab, light performance and so on reports they provide.
TBH, unless your Ins. Co requires it, I would not spend the extra $ on an independent appraisal. Unless you have a real concern to be addressed, I don''t believe there is much more an appraiser can tell you.
Of course, this is just my opinion and you should do what makes you feel most confident!

 

[Lorelei]

Date: 4/21/2010 11:19:16 PM
Author:512BB
I just got my ring today from GOG, which comes with an appraisal from them. The appraisal is very nice to have, as it has all of the information on it, however I'm confused about the replacement value in it. The replacement value is $5,000 above the invoice price. I wouldn't have a problem with this, except that I'm going to get insurance on it, and the difference in the price of the quote from Jeweler's Mutual is about $60 between the two values. So why is there an inflated appraisal included? Why can't that just say what I paid for the ring? And can I just get the insurance on the value I paid, or do I have to go with the appraisal value? I intend on getting an independent appraisal anyways, but what can I do about insuring it before I get the appraisal?

And don't take this as being unhappy with GOG. They have been awesome through the whole process, I'm just curious about the whole appraisal thing.

This is typical that some vendor provided appraisals are valued higher than the price you paid in many cases, this can sometimes come down to the ' feelgood factor.' But it is important to remember that if the stone was actually worth that amount, that is what you would pay in the first place. So you can insure for the amount you paid and as you are having an independant appraisal done, discuss this with your appraiser and they can give you a suitable figure to use for insurance purposes.

 

[512BB]

Date: 4/22/2010 9:22:32 AM
Author: arjunajane
Whether you can insure it for the value you paid, or only the appraisal value, or something else - is up to your individual ins. co. and will vary. Best to ask advice from J.Mutual on that question and seek the answer in writing.


However, the info I''ve received from appraisers on PS in the past on this question, which I believe makes good practice - is to insure it for halfway between the two values. TBH, a $60 premium increase for another 5k of cover is very minimal (I''m assuming you''re speaking annually?).

If you go with the ''half way between'' value, this will accommodate potential price increases in diamonds in the coming future, so you don''t need to worry about adjusting your policy right away - and depending on the nature (fine print) of your policy you could end up with a ''buffer'' you are grateful for, in a replacement scenario.


I''ve always found GOG''s appraisals extremely comprehensive and detailed, along with the lab, light performance and so on reports they provide.

TBH, unless your Ins. Co requires it, I would not spend the extra $ on an independent appraisal. Unless you have a real concern to be addressed, I don''t believe there is much more an appraiser can tell you.

Of course, this is just my opinion and you should do what makes you feel most confident!

Yes, it is an annual premium. But, the $60 represents almost a 50% increase in premium. And yes, the appraisal is very comprehensive and detailed, which I appreciate, and understand will be helpful in case of a claim.

 

[512BB]

Date: 4/22/2010 9:41:47 AM
Author: Lorelei

Date: 4/21/2010 11:19:16 PM

Author:512BB

I just got my ring today from GOG, which comes with an appraisal from them. The appraisal is very nice to have, as it has all of the information on it, however I''m confused about the replacement value in it. The replacement value is $5,000 above the invoice price. I wouldn''t have a problem with this, except that I''m going to get insurance on it, and the difference in the price of the quote from Jeweler''s Mutual is about $60 between the two values. So why is there an inflated appraisal included? Why can''t that just say what I paid for the ring? And can I just get the insurance on the value I paid, or do I have to go with the appraisal value? I intend on getting an independent appraisal anyways, but what can I do about insuring it before I get the appraisal?


And don''t take this as being unhappy with GOG. They have been awesome through the whole process, I''m just curious about the whole appraisal thing.

This is typical that some vendor provided appraisals are valued higher than the price you paid in many cases, this can sometimes come down to the '' feelgood factor.'' But it is important to remember that if the stone was actually worth that amount, that is what you would pay in the first place. So you can insure for the amount you paid and as you are having an independant appraisal done, discuss this with your appraiser and they can give you a suitable figure to use for insurance purposes.

Yeah, thats the logic that I''m stuck on. Who is it really worth that much to? If it was worth that much, wouldn''t I have paid that much?

 

[arjunajane]

Wow, that''s a cheap premium!
But I am coming from an Au POV, where my rings cost many hundreds to be insured.

It sounds like you have some questions and concerns about the process, so in this case I would advise you go ahead with the independent appraisal.
You can find someone in your locale through the resources tab at the top of this page.