Generally, any diamond engagement ring is very costly and an average earner has to bear a huge amount of money that may be equivalent to three unique engagement rings’ salary and lots of savings too. Clearly, such a heavy investments must be first secured by appraising and insuring the ring.
The appraisal allows you to have a true price of the ring you are purchasing. The insurance allows you to claim the money back if the ring is lost or its diamond falls out and is not traceable. But the appraisal should be done by a competent professional of the field and must be handling property related deals.
While searching for the appraisal professionals for your engagement ring, know that the appraiser may be employed by the jewelry store and may be performing for the customers of the store or for outside customers. But ensure that the appraisal is for true market value of the ring and not the price you paid for the ring in the store. This is because the store may give you a discount that will not be the true price of the ring.
Also avoid an appraisal that puts your ring price very high than its current market value as this practice is unethical. Moreover you will be at loss when insuring the ring. This is because you will be paying much higher for the insurance based on the high market value of the ring in the appraisal certificate. So, if the ring has been overpriced, ask the reason for it.
As far as the insurance is concerned, know that most of the insurance is done for retail replacement value, meaning that the insurance company will replace the ring in kind and quality. Clearly, the insurance company is not going to pay in cash. It is now clear that in case you have lost the engagement ring, the insurance company is likely to pay you an amount that is equal to the ring that they can offer you by replacing it through their own sources, if you insist on getting the cash.
Many of the jewelry insurance company do not, however, ask for appraisal from an independent professional and they can employ their own appraiser person for the purpose. The aim behind this is to get all the details of the ring and diamond. The insurance company aims at finding out accurate and complete description of the diamond and its current market price. It would be better if your ring appraisal has mentioned any diamond grading report. A insurance company will take the decision of insuring the ring only when it comes with the detailed description in the appraisal certificate.
Another source for insurance is the homeowner’s policies that cover the jewelry also. Ask your agent about the requirements of such insurance. Find out some other ways too regarding the insurance before you settle for your engagement ring.
