Ring Appraisal??

[courtney_b00]

Ok so I have a question that hopefully doesn't sound too ignorant. When the jeweler appraises your ring, say your engagement ring, do they appraise it for what you paid? Or, for example, would it be appraised for less than what you paid? The reason I ask is because last night my FI asked why I had my engagement ring insured for $1000 less than what he paid. I pulled out the appraisal paper and saw that that is what the jeweler (which he bought it from) appraised it for. I thought the whole point of insuring your ring was in to be on the safe side in case you had to replace it. How am I supposed to replace my ring when it's appraised/insure for $1000 less! I'm wondering if they messed it up when they typed up the paper, but I wanted to ask here first before I have my FI go into the jewelry store and possibly make a fool of himself.

[fsuambs]

I'm actually about to get my ring appraised. From my understanding, once I get it appraised I put it under my home owners insurance for what the appraisal was by the jeweler.

I would go back to the jeweler that your FI bought the ring from and ask why the appraisal value was different from the purchase value. Hopefully this helps!

[bahiabride2010]

My ring is insured for a whole lot more than my FI paid for it. As far as I know that's the way it usually is. IT's actually insured for almost double what he paid for it because of the good deal he got on the diamond. Hope you get this sorted out...I'd be curious to hear others opinions!

[Erika J]

Sure ring should be insured for the amount it appraises at.

 

If your FI paid more than what is appraised for, that is not a good thing.

 

Also if you feel it is worth more you can try getting a second appraisal but usually the jeweler who sold it will give the highest appraisal.

[courtney_b00]

Quote:

Originally Posted by bahiabride2010 My ring is insured for a whole lot more than my FI paid for it. As far as I know that's the way it usually is. IT's actually insured for almost double what he paid for it because of the good deal he got on the diamond. Hope you get this sorted out...I'd be curious to hear others opinions!

See that's what I always thought too! And I had my mom check her insurance statement to see how hers was and hers is what her husband paid, or more....oh and she went to the same jewelery store. I'm thinking they messed up.

[riokayak]

That doesn't sound right. I know my sister's appraised for way higher than what her husband paid, he did a lot of research and got a great deal on a beautiful diamond. I just got mine appraised, but have nothing to base it on since it's a family ring from the 20's.

[courtney_b00]

Well I know the diamonds are really good quality...I mean from what the appraisal says. It looked up what all of the grading & color means and my diamonds are colorless, etc. so it's not a cheap ring. I could understand if the FI bought a cheaper ring & diamonds and it appraised for less, but this just doesn't make sense.

[*Lo*]

I think mine was actually appraised at double what my FI paid for it because the diamond wasn't in the setting when it was appraised.

 

I would definitely have a second appraisal, if you were to lose it, you wouldn't even be able to replace it!

 

the only thing I can think of is that the $1000 difference is sales tax or something like that which wouldn't factor into the actual cost of the ring.

 

Goodluck!

[riokayak]

This is lengthy, but it touches on over appraising and under appraised values.

 

So I did a little Google searching and found this article from a few years back that Dateline did. Diamonds are appraised on the four C's (Carat, Cut, Clarity and Color). Some diamonds come with certificates that spell out the 4 C's for the diamond and some of these certificates also include an appraisal amount. In the diamond grading industry there is a margin of error allowance that is refered to as "tolerance". So your diamond maybe appraised 2 times by the same appraiser and get a slightly different grade that is with in the tolerance. However a grade can mean the difference of thousands of dollars.

 

So the certificate is used as a marketing tool, while the appraisal is in no way a scientific process.

 

Here are a few paragraphs from the article and the link below.

 

“I think it’s probably one of the more shameful things in our industry — appraisals used as marketing tools,” says Don Palmieri, a senior member of the American Society of Appraisers. “You get a high appraisal, you walk out thinking you just got the last great deal. But you just got misinformed with that document.”

 

"Again, just read the fine print, which has lines like: "appraisals are bona fide opinions..." and “these values are not for investment purposes, nor are they an endorsement of the price you should pay.""

 

"Will this cost you money?

Relying on any appraisal that’s substantially more than you paid could end up costing you money if you pay higher premiums when it’s time to insure.

 

Kelly McDermott paid $8,200 for her ring but was convinced it was really worth $15,000 based on an inflated appraisal from her jeweler. And so she paid the insurance premiums based on that assumed $15,000 value.

 

But when she lost the ring, the insurance company said it would replace the ring or give her a check for what it would cost them to replace it — $8,900.

 

“Five years, I’ve been paying these inflated premiums and it makes me angry, because I should have the ring insured for what it’s worth,” she says."

 

Diamonds: Is there such a thing as 'a deal'? - Dateline NBC- msnbc.com

[*Lo*]

I agree with having the ring insured for what it is worth. I obviously wouldn't want to pay premiums double what I would need to. However my policy states that they will write me a cheque for the full appraised value (which was twice what was paid) if something should happen to the ring. So I figure I will pay the higher premiums for a few years then likely just cancel it and self insure.

 

Just makes me feel safer if I left it somewhere when travelling or dropped it or something idiotic that I've been known to do.