Appraisal Value Question

[waterisgood21]

Hello everyone,

I bought my engagement ring for $16,000 but the jeweler appraised it for $26,000, is it a bit too much?
I'm insured with Perfect Circle and want to keep my premium low, how much would be a fair appraisal value?
Thanks!

 

[missy]

Hi, it depends what it would cost you to replace it if something should happen to it. If you are overinsured you are just throwing money out and if you are underinsured you might have trouble replacing it should the situation arise. Look at the stats on the diamond search function on PS and determine about how much it might cost you to replace the ring and go from there. I prefer to be slightly underinsured as I figure I can make up a small difference but there is little point in being overinsured because the insurance company usually will not just hand you the amount you have the ring insured for if that makes sense.

 

[dianabarbara]

Hi waterisgood.

inflating the appraisal value is a sale technique. good for the seller, really bad for the customer, who might leave the shop happier, but will have to pay higher insurance fees. I often read here that typically the price you paid is a more accurate estimate. any chance to have it re-appraised?

p.s. -- I also second missy's point.

 

[diamondseeker2006]

Can you insure with your sales receipt and diamond certificate? There is no way I'd insure for more than I paid unless it was bought second hand and cannot be replaced at that price. I would tell the jeweler what you paid and ask if he will adjust the value. Otherwise, that appraisal is worthless. It is really best to discuss that before the appraisal to prevent this from happening.

 

[waterisgood21]

Hi there,

I just got the ring and the jeweler said he can adjust the appraisal price. So stats of the cushion diamond is 1.74, G, VS2 in a platinum setting. Searching diamonds, the highest I've seen them is $15,000. So do you think asking for $22,000 is a fair appraisal price or should I go lower?

 

[diamondseeker2006]

Lower! $17-18k max!

 

[denverappraiser]

The transaction price is a good place to start. YOU could find it for that, what makes you or the jeweler think the insurer can't if they need to replace it? Maybe it's more (and maybe it's less) but an appraisal for insurance purposes is fundamentally a purchase order for the replacement. Over time this tends to creep up and it becomes helpful to pay attention but if it's a brand new item, you've got a pretty good benchmark.

 

[Karl_K]

My rule of thumb is cost+30% review every year or 2 for the insured amount.
This will usually insure your well covered for generally 2 years and not badly over paying for insurance.
I used to say 3 years but there have been times recently when that would have left someone undercovered for a year.
Some policies will also automatically cover more than insured value if a replacement cant be found at that value so that should be factored in if your chosen company does this.
For many rider type policies insuring for purchase price will leave you under-insured within months.