Inflated Blue Nile Appraisal: Effect on Insurance...

[henearly89]

Paid $7457 for my ring. Stone was 6152, setting 1305.

They appraised it for $12,250 (as per electronic appraisal I just requested). The date of the appraisal is two days from now. Confident the ring hasn''t even been set yet. Nothing like a mass produced, inflated appraisal to shake up the insurance coverage process.

So what do I do. If my appraiser comes back at $8500-8900, and I decide to insure it for $9000, would including their appraisal help or hurt the situation?

 

[henearly89]

Note the date in bottom right. Very thorough. To those who''d suggest this equivalent to a real appraisal, let this guide you.

 

[elle_chris]

Which company are you using? If it''s Jewelers Mutual, they''ll insure it for the cost with a receipt (that''s what I did). After it''s set, you can get it independently appraised for a price closer to what you paid.

 

[sfritz]

Regarding elle''s suggestion, to apply for insurance, Jewelers Mutual will accept a recent, detailed receipt for items with a purchase price of less than $5,000. For items more than that value, we require an insurance appraisal or valuation. You want an insurance appraisal that lists a current retail replacement price and provides a complete description of the item(s). We will use whatever appraisal document you choose to send us.

Sue Fritz
Jewelers Mutual Insurance Company

 

[elle_chris]

Did the policy change? I had a loose stone insured while it was getting set and all i was required to submit was the total cost? the cost was over 5k.

 

[oldminer]

Submitting an inflated appraisal is not worth the effort. Use a proper appraisal based on reality and make sure it is updated periodically if prices go higher or lower over the years. An appraisal dated days ahead is not a good thing because a real appraisal includes an actual inspection of the item by an expert to be sure the piece is properly made, the stones are the correct ones and theat they are well set and secure. An appraisal based on supplied details and the item not actually examined, is a poor product compared to a proper appraisal.

 

[sfritz]

Hi, Elle. The $5,000 rule of thumb for accepting a detailed receipt, rather than an insurance appraisal, has not changed. I don’t know the specifics of your policy and wouldn’t discuss that publicly, anyway. If you have questions, please call us at 888-884-2424. We appreciate your business.

Sue Fritz
Jewelers Mutual Insurance Company

 

[risingsun]

I do not have Jewelers Mutual, but my insurance company also has the $5000- cut off for appraisals. I have made a decision to insure all jewelry items that are $2000+ and I do have an appraisal for each piece. My jeweler uses the invoice price for the appraisal and that works fine for me for replacement purposes.

 

[Dreamer_D]

Before opting not to use the "inflated" appraisal, be sure that it is truly inflated. Do some research into the cost of replacing your diamond from a typical B&M retail store.

My ring cost me about CAN $9k out of pocket with an online vendor, inclusive of taxes. My appraisal came to $12k inclusive of taxes. But in Canada, if I were to try to buy my diamond at a retail store (there are no real e-tailers here except BN), that is what it would cost. So I am insuring it for that full value because that is the max the insurance company will be willing to spend if I make a claim, before they instead simply give me the cash. I want to make sure I am not stuck without being able to adequately replace my ring.

Insurance is a tricky business, but in the end you want to make sure that you can buy like kind and quality with the amount the ring is appraised for.

What did you independent appraisal say? I would trust it more than the BN one anyway.