Diamond ring on house insurance

redmalc

I have recently purchased my wife a diamond ring,the issue I have is Direct Line want me to insure it for the value on the valuation certificate,not what I paid for it.
The difference is 3K and increases the premium by £140,I cannot understand why they are taking this stance because if I claim I go to the companyi purchased it from and buy the same ring.
Is there anything I can do ? O

rs65

If you paid x amount and it can still be replaced for x amount, why is the valuation so much more?

Get them to give you a valuation at what it would cost to replace.

InsideInsurance

Who provided the valuation?

My guess is you've bought it from somewhere like Blue Nile where they sell it to you for one price and then give you a "valuation" at 50% more. Ignore that valuation, it is known in the industry and not trusted.

If you've had it valued professionally after purchase then you should use that secondary valuation.

The problem with using a highly reduced retailers prices is the fact that insurers do not use them for replacements. So if your ring is valued at £5,000 at high street prices but you insurer it for £3,000 as you paid Blue Nile then your settlement would by default come in the form of a gift card for Goldsmiths or Beaverbrooks jewellers for £3,000 minus your excess which wont get you a comparable item.

If you decide you want a cash settlement then they are entitled to remove the discount they receive from their preferred suppliers (~30%) and so you get a cheque for £2,100 minus your excess