House Insurance and diamond ring

redmalc

I recently purchased a Diamond ring for £5600 after a lot of homework and got a GIA valuation certificate with the ring for £8600.
The insurance company have insisted i insure the ring for £8600 but my argument is i can buy a new one for £5600, can someone understand this,if misplaced or stolen will the insurance company pay the £8600 insured value.

noisla

How does a valuer arrive at a higher value than the market price? If you are getting a special (five finger...:eek:) discount, then the insurance company won't manage this when they have to organise its replacement in the event of loss. They are interested in the market price which, for precious stones/jewellry, may go up and down and not necessarily match the original purchase price, hence they need a valuation.

At least that would be my assumption, I don't have any industry knowledge.

notanewuser

It's common for valuations to be above purchase price. You need to insure for the valuation value. Is there a problem with doing that?

somethingcorporate

Interesting question indeed, same thing when I bought my wife's engagement ring a few years back (7 years now, making me feel old).

The insurance valuation was around 30% higher than the price paid.

redmalc

I do have a problem with the increased value yes its £200 more for the policy

InsideInsurance

Let me guess, you bought this from Blue Nile?

If you did then you may want to get the "blue nile" mark from inside the ring ground out and then take it to an independent jewellers for valuation. Blue Nile are well known for selling for one price and giving an inflated second valuation price with it but it is a feel good factor not a valuation that an insurer will take seriously.

You could also take a look at any of the Axa underwritten policies like Axa Direct, M&S etc all of which have a £10,000 or more single article limit and so neither valuation would trigger you needing to declare it

redmalc

Inside,no i would not buy from Blue Nile.

Regards

InsideInsurance

redmalc wrote: »

Inside,no i would not buy from Blue Nile.

Regards

The same would advice would apply. I'd always be wary of a retailer that sells at one price and provides a valuation significantly higher than its selling point. Blue Nile are well known for doing this but are a very good retailer and are certainly cheaper than high street retailers (and often better quality)

cattie

As mentioned, all jewellery valuations for insurance purposes come out at a higher figure than the retail price.

Whether it's anything to do with possible inflation or not I don't know, but do know it's a standard thing. Even decent jewellery bought in one place & valued for insurance purposes elsewhere always come up with a value higher than retail.

22johnny22

this is a situation that is so common.

You pay X

the valuation says Y

the insurer say they can replace X for Z!

if the ring is worth what you pay for it (x) then insure it for (x) but expect Z

I have had sold rings at auction for £500 that were valued at £2,000

If you can, see if the insurers will specify it at X and guarantee the price.

InsideInsurance

cattie wrote: »

As mentioned, all jewellery valuations for insurance purposes come out at a higher figure than the retail price.

Whether it's anything to do with possible inflation or not I don't know, but do know it's a standard thing. Even decent jewellery bought in one place & valued for insurance purposes elsewhere always come up with a value higher than retail.

Not my experience if you do it immediately - ie buy and get it valued "the same day". Most high street jewellery will come out lower than their retail values by a little bit.

Obviously if you wait a period of time then you have movements in the material prices and changes in tastes that can positively or negatively impact the value.