Why is USAA refusing to insure rings for appraisal value?

[BlingDreams]

Re: Why is USAA refusing to insure rings for appraisal value

I always insure for purchase price as that is how much it would cost me to replace, especially when there is inflation protection built in. If they allow an additional 25% over what you paid to replace a like item, I am not sure why you'd want to pay higher premiums? There is no need.

Hi DS,

I know this is an old thread, but you seem to know a lot about this and thought you might be able to help me with this question. I can understand insuring for purchase price if you paid pretty much what retail is; what if you got a GREAT deal on something though? And by GREAT, I mean ~30% less than what every other diamond in the same size/color/cut quality/clarity/polish/symmetry/etc/etc/etc sells for on an average basis. Maybe you bought it from someone who was strapped for cash, or a pawn shop, or something similar. In my mind, it doesn't matter why you got a great deal, just that if the time came to replace the diamond that great deal may not be possible to find and now you're short many thousands of dollars. Wouldn't one be better off insuring for what that piece of jewelry would usually sell for?

 

[diamondseeker2006]

Oh, if the diamond was not bought retail (like second hand from a divorce or a family heirloom with unknown value), then I would compare prices for similar diamonds online and i would take that list to the appraiser and tell him that I wanted current online retail replacement pricing on my stone. If buying from a jeweler, that's current retail.