(Closed) Did you rings appraise less than you paid?

posted 10 years ago in Rings
Post # 17
Member
1525 posts
Bumble bee
  • Wedding: May 2012

We took my rings to an independent appraiser with no financial interest in the number. The e-ring (solitaire) came in about about even (maybe a 2-3 hundred more). The W-ring came in about 30% more.

Depending on where you got your rings, that gap will vary. We bought at a chain store, and I’m pretty sure we overpaid (even though we landed discounts each time). : I think we could have gotten a better deal at BlueNile or WhiteFlash.

Post # 18
Member
97 posts
Worker bee

@Taylor4:

“Jewelry will always appraise high because that is what insurance companies (or private jewelers who will also insure) will base your payments off of. So of course they want a high value–it means you will pay more for the insurance.”

 

Have you got a vendetta against Insurance companies? This is certainly not the case.

 

My friend recently changed her centre stone on her engagement ring as she inherited a beautiful diamond, if you place the details in Blue Nile for example you can purchase the same quality stone for about £10,000.  The ring she had the stone set into however was valued at £20,500 for insurance purposes as this could potentially be the cost of replacing if lost (I know how on earth did the jeweler come to that huge conclusion). The home insurance premium is not affected by a ‘predicted cost’ of replacement from a jeweler valuation. 

Although if you were to claim on a policy the premium would certainly go up the following year. 

Post # 19
Member
27 posts
Newbee
  • Wedding: April 2012

my ring appraised for the same amount he paid for it.  We bought from a small Chicago chain (3 stores total).  

Post # 20
Member
1776 posts
Buzzing bee
  • Wedding: May 2011

My ring appraised for more.

I only pay like $4 for my personal articles policy so I don’t really think the insurance companies are making bank off overappraising.

Post # 21
Member
2515 posts
Sugar bee
  • Wedding: November 2011

We looked into adding my ring on to our home owners insurance and it would’ve costed us 1% of the appraised value every 6 months. So yes, if they over appraised our ring, we would’ve had to pay more for our premiums.

Post # 22
Member
1187 posts
Bumble bee
  • Wedding: September 2012

My ring appraised for $3k more. And we just assed it to the homeowners insurance, though I thought it was little more expensive than it should have been, like $300 for the year if I remember right.

Post # 23
Member
575 posts
Busy bee
  • Wedding: September 2012

@amybee444: No. I just know how insurance works. Home insurance will not be affected by an appraisal, because typically they do not need an appraisal. They have predefined limits for certain categories of personal effects. In the US they typically payout around 1000$ for theft of jewelry. So here in the states it doesn’t matter what a ring appraises for if you’re only covering it under home owners insurance. If it’s stolen (and I don’t believe covering a ring under a home policy covers loss) they’re only going to give you 1000$ at the end of the day.

However, you can add a rider to your home insurance for the ring. This will take the appraisal into account, and you will pay based on the value of the ring and what type of insurance you choose (replacement, actual cash value, or valued-at…actual cash value being the cheapest, the most common, and yes, the one that only gives you what you paid, minus deductions). You typically pay 1.50$ for every 100$ of coverage. 

You can also purchase completely separate insurance just for your ring and this will also base your premiums on the appraisal. 

So jewelers that both do the appraisal and offer insurance have a vested interest in keeping that appraisal value high. It’s important when getting a ring appraised to take it to an independent appraiser. 

Even more information

Post # 24
Member
486 posts
Helper bee
  • Wedding: December 2014

We didnt purchase my ring from a chain (it was custom made by a jeweler) but it appraised for almost 10,000 more than what my fiance paid. Im sure it wont appraise for less.

Regarding having it appraised by the place where you purchased it, you should never do this. You should always find an independent appraiser not associated with any jewelry store or business. This is because only an independent appraiser can be objective. If the store from where you purchased the ring “appraises” the ring, they will of course tell you it is worth far more than what you paid (why would they tell you its worth less than what they charged? they want you to think you got a deal and would never want you to know that you overpaid). If you bring it to a different jewelry store (not an independent appraiser, but an appraiser associated with a seperate store or business), perhaps they would tell you its worth less (or the diamond is not what you think it is) because they want you to feel you made a mistake by NOT purchasing from them. Therefore, you should truly always find an independent appraiser who is not associated with any business who can give you an objective appraisal.

I know that Pricescope maintains a list of reputable appraisers in all different areas. Good resource to check out.

Post # 25
Member
97 posts
Worker bee

@Taylor4:

“So of course they want a high value–it means you will pay more for the insurance.”

Sorry for a moment there I thought you insinuated insurers inflate the valuations of jewelry on how much they want to charge you.

Post # 26
Member
486 posts
Helper bee
  • Wedding: December 2014

After typing all that, I see that Taylor4 addressed the same thing. Independent appraisals are so important!!

Post # 27
Member
646 posts
Busy bee
  • Wedding: November 2012

The jewler he bought if from appraised it for 3k more, and he also took it to an independant appraisor who appraised it for 3.5k more than he paid.

Post # 28
Member
244 posts
Helper bee
  • Wedding: August 2011

My engagement ring was appraised for $6,140.

My wedding band is a little over $1,000. 

 

We paid $6,000 for both rings together. 

Post # 29
Member
610 posts
Busy bee
  • Wedding: May 2013

I went to an independent jewelry appraisal (doesn’t buy/sell jewelry) and he suggested to insure it for what you paid for it with an adjustment for inflation of 5yrs.  He said 5yrs. because most people re-appraise their rings in 5yrs.  Also, he said that if it’s over-appraised, insurance companies has the option to not pay out that much. 

Post # 30
Member
483 posts
Helper bee
  • Wedding: May 2012

I found this thread because my ring *did* appraise for less, and I wondered how common that was.  (Apparently not very common at all.)  Not much less – about $150 less – but I wonder whether this is because it’s a ring that uses recycled materials, ethical labor and a Canadian diamond. 

I consulted the appraiser in advance to ensure that a Canadian diamond appraises for more than another diamond (since they’re more expensive to mine), and she assured me that yes, that is taken into account.

I’m wondering whether I should get it appraised again, since State Farm would cut me a check, rather than replace the ring in the event that I lost it. On the other hand, I’m not planning on losing it, so that would just be extra premium to pay.

Post # 31
Member
483 posts
Helper bee
  • Wedding: May 2012

Looking at another thread, I think that the reason why so many rings appraise for more is that the jeweler is the one who provides the appraisal.  Not exactly an unbiased opinion there.

And if you were to have a diamond appraised by 3 independent appraisers, you’re likely to get 3 wildly different answers. 

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