Post # 1
Hello ladies! I have just been investigating insuring my wedding set and there are a few things I found out or question about the whole process. Let’s say you bought your ring for $30k and the jeweler appraises it for $75k for insurance purposes. I guess most of us are thrilled to receive an appraisal that is double or even triple the amount we paid for our ring. The problem arises when you take a look at the insurance premiums and the difference between insuring an item with a replacement value of $30k as opposed to $75k. The annual premium goes from $460 to $1400 which is understandable to insure a more valuable item. But you don’t have a $75k ring, you have a $30k ring as proven by the amount you just paid for it, right?
So what I’m thinking is – it’s such a scam! You are so happy to have an inflated appraisal for your ring, the insurance company is collecting over inflated premiums from thousands if not millions of customers and…the jewelry store can charge up to the insured amount to replace your item if you ever make a claim.
I asked my jeweler why they appraise items for so much more than you pay for them and they said that it was to account for the next two years of inflation. Pa-lease…the value of precious metals and gemstones goes up and down all the time and it’s not always up! I think the more appropriate thing to do is to make sure you always update the value and have an ACCURATE replacement value reflected on your insurance policy. I am thinking of asking our jeweler to appraise the ring at SLIGHTLY over what we paid for it just to make sure it is covered. Maybe a 10-20% increase for now and then revisit the value issue in a few years.
Has anyone else had any experience in this arena? My biggest question is why would you insure your ring for double or triple what you just paid for it and pay the higher premiums for something that you are very unlikely to ever file a claim for anyway?
All input appreciated 🙂 Thanks!
Post # 3
My almost 10k ring appraised for 2k more. so not double but a good amount more. I still need to insure my ring though, I’ve only been engaged for a week.
Post # 4
I’ve always wondered the same thing. I think appraisal values are kinda bullshit. But most people probably dont really have it appraised and have their insurnace adjusted every year. Mine appraised for about 35% more than what was paid for it and I think even that’s silly.
Post # 5
we bought mine online from an antique jewelery seller, so it didnt come with a certificate or appraisal or anything & didn’t care enough really to go get it appraised. My husband got it insured through state farm and they didnt need an appraisal, so i assume it was just insured for what we paid for it.
Post # 6
@cuppeeecakes: The jeweler appraised my heirloom ring, then we had a proper appraisal done and that amount was three times what the jeweler thought.
It is insured, but probably could not be replaced. I’ve looked all over the internet for months, and cannot find a center stone even close in size or color yet.
Post # 7
@li612: same, no appraisal needed for insurance.
Post # 8
We bought my ring from an independant jeweller who made it themselves. They’d actually made the ring several years before we bought it, so it’s value has increased as the cost of materials has gone up exponentially, but because they could see how in love with it we were they sold it to us for it’s original (uninflated) price. They gave us an appraisal for insurance purposes, and it’s worth over £1000 what we paid.
Post # 9
My ring was appraised at the place it was bought and I think the amount was rounded up to an even number. (about 2-3K more)
We are currently switching insurance companies and they accepted the appraisal May 2012.
I don’t know how long ago your ring was purchased, but it should not triple in price. If you get such a big difference I would get a second appraisal.
Post # 10
We got our appraisal last night.. About 2k more than we paid.. I think that’s just about right. I were getting engaged tonight and you best believe when we get home we are insuring this bad boy!!
Post # 11
DH works in high net worth insurance. We used a very reputable jeweler in the industry that his company has worked with for many years for our upgrade. The prevailing opinion within the industry is that some people overstate the appraisal to make the buyer feel better about “getting a deal.” Insurance values do go by replacement value. I would suggest a second appraisal and then compare the two. Even insurance companies are known to question appraisals that are ridiculously over the amount paid. And yes, our appraisal came in at more than what we paid but not ridiculous.
Post # 12
Mine definitely wasn’t appraised at double and I’m not sure what you consider “close to” but it was appraised for a little less than $3000 more than what he paid. But I agree with you. I was happy with the appraisal because it was high enough that my ring is more than covered but not so high that I’m paying premiums for a ring I don’t even own. If he had gone to double for the appraisal I would have asked him to lower it.
Post # 13
My wedding ring was appraised for a couple hundred more than we paid.
Post # 14
My center stone is an heirloom from FI’s grandma (who is still around, mind you–she just felt strongly that I should have it). He also had a family friend set the stone, so he paid cost, maybe less. My ring was appraised at more than 5x the cost to FI. Granted, diamonds were different 60 years ago and it’s a very nice stone, so I’m really not sure that this post is helping shed any light one way or another.
Post # 15
My ring was appraised for about $2k more than he paid for it (I don’t know either figure, though). He got it from JA though so I’m not surprised- the appraisal probably would be accurate for what we would have paid from a brick & mortar store.
Post # 16
We bought an antique with an appraisal of almost 3x the price we paid. We’ve insured it at the appraisal price. The price we paid was fantastic – it would probably cost the appraisal price for a similar piece.