(Closed) ring appraisal $ vrs actually cost.

posted 6 years ago in Rings
Post # 3
Member
269 posts
Helper bee
  • Wedding: October 2012

So, typically appraisal values are high because appraisals are for insurance purposes rather than being an intrinsic value of the components of your ring. Jewelers put higher values on insurance appraisals so that the figure will be accurate up to several years in the future, and with engagement rings you are dealing with commodities whose prices fluctuate wildly all the time – mostly upwards. If your ring was insured for exactly what you paid, and you lose it a few years from now, the insurance company would only pay out on the 2012 value of your ring – which might be far below the actual cost of having a jeweler remake that ring, leaving you to pay the balance on the commodity increases out of your pocket. This is also why you need to periodically have your ring reappraised and why insurance companies typically don’t accept appraisals more than two or three years old. 

When I appraise new purchases that include large stones I typically would appraise a hypothetical $10,000 ring for around $13,000, depending on what the stone was. (It was common in the nineties and before to, like, quadruple the purchase price, but that practice is falling out of favor because it leaves you way overinsured AND you pay too much for your insurance.) If I’m appraising an antique or vintage piece, I calculate a high estimate of what it would cost me to currently remake that piece. 

Post # 4
Member
642 posts
Busy bee
  • Wedding: August 2012

We have the appraisal from the jeweller that my Fiance had my ring made at, because he bought the diamond seperately we got a much better deal and the “relpacement” value of my ring is more than twice what Fiance paid for it. He bought my ring for about 4000.00 and the replacement value is 9300.00, and our insurance on it is only 82.00 a year, which includes theft, and damages including loss of the diamond. The only caviot is that I have to bring my ring to the jeweller once a month to make sure that the setting is still strong and it’s only because of what I do for a living. 

 

Post # 5
Member
1676 posts
Bumble bee
  • Wedding: July 2012

He paid $1750 for both the e-ring and the wedding ring, retail value was $2400 with tax, and we have it insured for $3500. 

Post # 6
Member
261 posts
Helper bee
  • Wedding: October 2011

We bought the ring for just shy of 7k but it was apraised at over 23k (um, shocked to say the least)… so that’s what we have it insured for.

edit: read a previous post… it looks like we’re overinsured! Our insurance rates aren’t outrageous, though. If they were I would consider getting a different appraisal.

Post # 7
Member
269 posts
Helper bee
  • Wedding: October 2012

@shambley:  It depends. if you bought your ring secondhand or something, it’s possible you just got an exceedingly great deal – but it sounds to me like yes, you’re probably at least a bit overinsured. 

Post # 8
Member
893 posts
Busy bee
  • Wedding: May 2013

@Sweet.Sugar.Rose:  My jeweler’s appraisal was inflated; almost twice the value. I know it couldn’t be right so I went to an independent appraiser. He was more realistic about iit and it was still more than the cost we paid. He told me that there’s a clause in the insurance policy stating they don’t need to pay the full value if they find it to be over-appraised. 

Post # 9
Member
2320 posts
Buzzing bee
  • Wedding: October 2011

@tonights:  Seems you know quite a bit about this topic… I’m curious how you would appraise a Moissanite?  

Post # 11
Member
5494 posts
Bee Keeper
  • Wedding: August 2011

My diamond ring appraised at 4 times what we paid for it, (from 2 separate appraisers).  We thought it was way too infalted after the first one so we went in for a second appraisal elsewhere.  same result.

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