Post # 1
So I have a few questions. The first one is how is everyone’s ring insured? Through homeowners insurance? A seperate jewelry policy?
I’m going elbow deep into ring insurance information because we just got our ring apprasial paperwork back and holy moly. We chose to go with a small, local, family ran whole sale jewelry place because it came incredibly well recommended. My family, tons of family friends and a few personal friends sang the praises for the quality of rings, the amazing customer service and the unbeatable prices. We had an amazing experience and were thrilled to buy from him! We knew were getting a deal.
We did not know we were paying 1/5th of the actual worth of the ring.
That’s not a typo. We literally got the steal of the century and I had my boyfriend get appraised twice just to be sure. So, if we paid $1000 for the ring, it’s worth over $5000. We paid much more for it then that so you do the math…
I’m freaking out about wearing such an expensive piece of jewelry! It’s worth more than my car! Has anyone else been in my position before where this ring you’ve wrapped your head around wearing price wise is suddenly worth so much more than expected? How about just daily wearing such an pricy piece of jewelry? I hope i’m not the only person strugglign with this, because I still love my ring but i’m a bit scared of it.
Post # 2
Just to ease your stress levels, jewelry is almost always valued much higher than what you pay for it or what you could ever sell it for. I always think of appraisals as need-to-have for insurance purposes and an ego-bump for whoever bought it/is wearing it 😅
Post # 3
My ring is insured through Jeweler’s Mutual. A lot of appraisers way over-inflate value. You want to make sure this isn’t the case or you’ll be over paying on insurance. It’s extremely unlikely that a jeweler would sell you a diamond at a loss.
Post # 4
Oh no, he wasn’t at loss at all. He’s a wholesale jeweler. He made a profit. We also had two seperate gemologists confirm the valuation.
Post # 5
Appraisals are definitely inflated and I actually asked my jeweler to be more realistic on my engagement ring because I didn’t want the higher premium for insurance.
i have a personal articles policy that is through my insurance company. It accounts for inflation and gives you cash to replace. The annual premium is 1% of the appraisal amount.
Definitely get it insured. It will give you peace of mind.
Post # 6
- Wedding: September 2021 - Australia
we insured ours a few days after he asked with an add-on clause to our home and contents insurance, covering mobile valuables for loss or theft inside our outside the home. We insured it at replacement value cost, using the invoice from the purchase rather than a valuation certificate.
Like you, I was quite nervous about walking around with a ring that cost more than the replacement value of my car and I feel a lot better knowing it is insured. The insurance premium wasn’t much – $120 AUD per year.
Post # 7
I’ve insured my ring for its purchase value – as an addendum to my home and contents insurance. It means if I lose it, damage it or it’s stolen, no matter where I am or where it happens, I get the full amount I paid for it back.
Post # 8
I felt the same way at first, but quickly got over it! LOL! It is on our homeowners insurance policy so I do feel better about it now that I know it’s covered! Enjoy your ring!
Post # 9
I would get it reapprised for closer to what you actually paid or bought it for and insure it for that value. There’s no way it’s “worth” 5x as much as you paid for it if you can just go and buy it for that 1/5th price. And there’s no reason to pay insurance on 5x the value if you can also go out and buy it for the price you paid.
Post # 10
Hi, we’ve had it reappraised twice now. Each valuation has come back within a $100 of each other.
Post # 11
Appraisals are mostly for insurance purposes as a replacement value. They are usually double the price of what the ring may have been worth retail. Example – you pay $2500 and the appraisal comes in at $5000. Then the question – What is the ring really worth? In any industry, it is worth what someone is willing to pay for it. When it comes to diamond jewelry resale, you might get 25% of the value. I don’t really pay attention to appraisal’s other than for insurance purposes.
As far as walking around with a ring that cost as much as my car, it is an inflated price so I don’t even think about it.
Post # 12
Appraisals are always overinflated.
I highly doubt you got the deal of the century and a jewelry sold you a ring for 1/5th of what it’s worth. That’s simply not how the industry works.
I’m always amused by how many jewelers market themselves as wholesale jewelers who sell to the public. There are some educational threads on Pricescope debunking this myth.
As far as insurance, I have a separate policy on mine (not thru homeowners) because I wanted more control over how it would be handled if my ring was lost or destroyed – my ring is bespoke with a large carat size antique diamond, so no something that can be as easily replaced as, say, a ring from Tiffany.
Post # 13
Insured through Lavalier (jewelery insurance) because I lose and fiddle with things easily! After I nearly lost my ring once, I now stopped wearing it and only wear my wedding band.
Post # 14
Appraisals are almost always way over. Get it insured for the price you paid for it otherwise your insurer may contest it. I like Jeweler’s Mutual for insurance.
Post # 15
As PPs said, appraisals are always inflated. Usually, about double what you paid. IIRC, this is so that you could replace the item through a high street store, ie, they tend to give the high street value, which, as anyone who knows about jewellery, knows is always WAY inflated. In reality you would likely go back to the same company you used originally, and replace like for like, so there is zero point paying the extra for a policy for something worth 5 times what you paid.
Not to say it isn’t possible to get a good deal: I have found that by shopping around, and buying at the right time, you can save 25-30% of the typical going rate. But I highly doubt anyone is selling anything for 1/5 of the going rate.