How To Get Jewellery Valued For Insurance?

First and foremost. A “jewelry appraisal for insurance” should be treated the same as any other sort of jewelry appraisal.

Jewelers frequently hear, “I’m not looking to spend a lot of money on an evaluation. It’s merely for getting my jewelry insured.”

It’s never fun to spend your hard-earned money on something intangible that you’ll ideally never use. However, buying for insurance is pointless if it leaves you stranded when you really need it, simply because you didn’t want to pay more than the bare minimum for an accurate, complete inspection.

The Importance of Jewelry Appraisals for Insurance

When you insure something, you must have confirmation of its value and qualities in order to replace it, whether with a similar sort and quality equivalent or with cash. In the instance of jewelry, if your assessment is incorrect, you may not be able to collect enough money from an insurance claim to replace your piece at fair market value.

If you have an incomplete jewelry assessment, the insurer’s interpretation of the brief description of your piece may differ from what you think it is.

In any case, you may find yourself without an equal replacement for the jewelry for which you’ve been paying premiums year after year. Isn’t it kind of defeating the purpose?

Bonus: many jewelry appraisers check your jewelry for loose diamonds or stones during the appraisal so you can correct the problem before losing anything.

Typical Jewelry Appraisal Costs

Let’s talk about the costs of getting an accurate, thorough evaluation now that you know how important it is.

Let’s start with the pricing structure. Fees for appraisals should never be based on a proportion of the worth of the jewelry. This is unethical since the appraiser will make more money if he or she overvalues a work, giving them an incentive to do so. Appraisal services should always be billed either by the hour or by the piece.

Depending on the complexity of the jewelry, hourly charges often range from $50 to $150. A plain wedding band will always be less expensive than a three-stone engagement ring; the latter just has more to appraise.

A Sales Receipt Isn’t Enough

A receipt of purchase will not be accepted as a valid measure of value by insurance providers. It makes no difference how much money you spent on your jewels. The insurance company uses the actual appraised worth rather than the cost when creating a policy or paying a claim.

The Insurance Company Might Require Updated Appraisals

You might wish to acquire regular appraisal updates even if your insurance company doesn’t demand them.

  • It’s the most effective approach to ensure that you’re properly insuring your valuables.
  • The value of your jewelry may be affected if market prices for precious metals, diamonds, and exquisite jewels rise or decline.
  • Vintage, antique, and collector jewelry styles come and go in popularity, generating value fluctuations.

You May Still Have to Prove the Value In the Event of Loss

The insurance provider will not just write a check for the amount of coverage stated when you file a claim. Before settling your claim, they will double-check the details.

If your jewelry is stolen, the criminal will want to see a police record. They’ll want to know how and why you lost it or it simply vanished. If you don’t have any witnesses, they may opt to accuse you.

Does jewellery need to be valued for insurance?

In the event of loss or damage, the best method to protect your jewelry is to insure it, which necessitates a valuation. It is critical that you discuss with the appraiser how you would replace your goods if they were lost, as this is crucial to the sort of appraisal that is generated.

How much does it cost to have jewelry evaluated?

Given the specialized training and equipment required for the job, expect to pay a premium. Depending on the things appraised, costs might range from $50 to $75 per item, or $50 to $150 or more each hour. Appraisals should be performed every few years to maintain your insurance coverage up to date, especially since the prices of precious metals change drastically. Knowing the worth of your inherited jewelry will help you get a fair price for it if you decide to sell it.

Where can I take jewellery to be valued?

  • The jewelry’s complexity and rarity. An ornate brooch with a dozen precious stones is more difficult to appraise than a solitaire engagement ring.
  • Because the GIA is acknowledged as the industry standard and their laboratories are equipped with sophisticated grading equipment to assure correct grading, the appraiser’s qualifications may allow them to charge less than a lab report from the GIA. Furthermore, because GIA appraises such a large volume of jewelry, their market resale estimations are quite unusual and based on hundreds of recent sales.

A free evaluation is often provided by a local jeweler, gold or diamond exchange, or pawn store near you, especially if you are a regular customer. Keep in mind that an appraisal is generally overpriced compared to what you would pay at a jewelry store for the identical item, but it might be valuable for insurance or tax purposes.

Expect to pay a flat or hourly cost of $75 to $150 per hour if you have your jewelry assessed for insurance purposes by a local jeweler or appraiser. Some appraisers charge a percentage of the appraised value as their fee.

A one-carat diamond ring will cost an average of $200 for a certified laboratory report from an independent association like the Gemological Institute of America, or GIA, with fees ranging depending on the size, rarity, and other variables of the item. For a modest diamond ring, a GIA grading and lab report will cost around $200 and above.

What happens if I find the jewelry I filed a claim for?

It happens all the time: you believe your jewelry is lost forever, you make an insurance claim, and then you recover it a few months later. Contact your insurance company if you find the jewelry for which you filed a claim. In most circumstances, you’ll have to either pay the money back to your insurer or return the new item you bought with the insurance money to them.

Insurance fraud is when you fail to notify your insurer that you have discovered jewelry for which you have submitted a claim. It’s not worth the risk of going to jail for. Make a call to your insurance company and tell them the truth about what transpired.

Can you appraise jewelry online?

Getting an evaluation for your jewels is a vital step in preserving them, whether you’ve inherited a jewelry collection or want to insure the items you already possess. While some local jewelers may provide evaluation services, there are now a plethora of possibilities for having your jewelry appraised online.

To assist you in finding the best online jewelry assessment service for your needs, we examined and rated the top online jewelry appraisal services.

How often is jewellery valued for insurance?

3. Keep your valuation current – It’s critical to keep your policy current in order to keep it valid. Because of the volatility of the market, certain insurers may set a limit on how often jewelry must be revalued. Every 3-5 years is normally suggested.

Why are jewellery valuations so high?

As previously indicated, people obtain jewelry appraisals in order to insure their possessions. So, if an insurance firm wishes to know the value at which to insure an item, wouldn’t the worth just be the purchase price in the case of a new item?

After all, the purchase price should be the most accurate depiction of the item’s current market value, and it should be able to be replaced for the same amount if it is lost. You’d assume so, right?

How long does a ring valuation take?

All jewelry should be professionally valued for a variety of reasons, but principally for insurance purposes. Few people realize that it is the claimant’s responsibility to prove the value of any item they are claiming for in the event of loss or theft to insurers.

It’s important to understand that there are different types of valuations, including Insurance Valuation. In the event of a private sale, divorce/family division, probate, or even capital gains tax, jewelry will need to be evaluated.

It is not difficult to have your jewelry valued, but it is critical that it is done correctly. When getting your jewelry appraised, keep the following five points in mind:

Always use a Registered Valuer

Look for a valuer who is a member of a governing body, such as The Institute of Registered Valuers. This is the National Association of Goldsmiths’ official valuers network. The Association of Independent Jewellery Valuers is another option. This network focuses solely on independent business valuations. All registered valuers will have received thorough training in gemmology and numerous specialised areas, as well as all of the necessary equipment to conduct a professional appraisal.

Make sure they are certificated

Always insist on a valuation by an IRV or GVJ registered valuer when having jewelry or timepieces valued. Accept no valuations done ‘on behalf’ of the valuer or the shop, as they may not be legally binding.

Where to get a Valuation

  • Return to the store where you bought the item. Most jewelers outsource expert values, so check with the store first, but expect to wait 3-4 weeks for yours.
  • Attend a day of valuation. Many high-street jewelers arrange valuation days on a regular basis. Because these are quite popular, you may need to arrange an appointment ahead of time.
  • The Guild of Valuers and Jewellers will do valuations either by mail or by visiting your house in specific circumstances.

What to Expect

Cleaning, weighing, measuring, and, most importantly, photographing your belongings are all included in professional appraisals in order to offer you with a thorough valuation portfolio. A full description, hallmarking information, and a condition statement, as well as a professional estimate of value on the current market and the relevant insurance qualification, should be included.

How much will a Valuation Cost?

Valuers charge widely based on the sort of valuation requested; before committing to a valuation, discuss fees with your jeweler. Valuers can bill by the hour, by the percentage of value, or by the item.

Remember to keep your valuation safe after you receive it, preferably with your bank or solicitor, and have it updated every few years.

How do you get something appraised?

Many auction houses hold free appraisal days where members of the public can bring in their valuables. Each item will be examined by a professional who will provide an auction-value estimate, which is the estimated price the item will sell for at auction. You will not receive any paperwork regarding the item’s value because this is a verbal appraisal. Typically, there is a limit on the number of products you can bring to these events.

Here’s how to get your stuff valued during a free appraisal day at an auction house:

  • In your location, look for auction houses. If you reside near a major city, you’ll almost certainly have at least one or two choices. On the East Coast and in the Mid-Atlantic States, Doyle New York, Rago in New Jersey, and Michaan’s Auctions in California are a few significant options.
  • On the day of the evaluation, bring your item with you. Remember to bring a notebook and pen with you so you may jot down whatever information the appraiser provides. Because you won’t be getting a written report, your notes will be crucial.