Jewelry Gist: Appraising And Insuring Fine Jewelry

By: Ann Knapp

Understanding and insuring the appraised worth of a fine jewelry collection are important steps in protecting valued treasures. Some may be surprised to learn that a homeowner's policy will not necessarily offer full coverage for a piece of jewelry, such as an engagement ring or beloved heirloom. And before searching out appropriate insurance coverage, a professional appraisal may be needed to render the most accurate value of jewelry pieces.



The Difference Between Appraisals and Lab Certificates

Both an appraisal and lab certificate reports provide important jewelry and gemstone information, but they actually serve separate purposes.



Lab certificates, or grading reports, indicate the value of an unmounted gemstone. These reports examine details regarding color and clarity, carat weight, cut and shape. A report for a gemstone or diamond does not typically change unless the stone undergoes an alteration, such as mounting.



Appraisals, on the other hand, are used for any type of jewelry, including pieces that do not contain gemstones. Appraisals are used to put an actual value on a jewelry piece, most often for the purpose of insurance. Individuals considering a purchase also use appraisals to authenticate the market value before completing the transaction. Market values for fine jewelry can change, so some professional appraisers suggest having a piece appraised every few years. Individuals who use the same appraiser may be able to secure an update, which is typically more economical than a brand new appraisal.



Prior to selecting an appraiser, consider the following:

1. Choose an appraiser who is an accredited gemologist. These qualifications verify the appraiser has met the educational minimums in the field of gem sciences to correctly identify and grade diamonds and gemstones.

2. Confirm the appraiser's formal training. He or she should be trained and tested by a recognized appraisal organization, such as American Society of Appraisers (ASA) or the International Society of Appraisers (ISA).

3. Know the frequency with which an appraiser performs appraisal duties. Find someone who has an extensive background in appraisals, more than just an occasional appraisal performed through a jewelry store.

4. References are critical when searching for an appraiser. Look to professionals such as attorneys, banks and others with whom the appraiser has a long-term, working relationship.

5. An appraiser's professional charges should be based on an hourly rate or the time and complexity involved. Professional appraisers never charge a percentage of the value of the item appraised.



Insuring A Fine Jewelry Collection

A careful review of an insurance policy will reveal the actual coverage for jewelry. Typically, homeowner's or renter's insurance will cover jewelry in the case of theft, but other cases of loss may not be covered. In addition, these policies set limits for loss of personal property, including jewelry. In general, policies will typically cover approximately $1,000 for theft of jewelry. Renter's insurance payouts are usually lower. But if a collection is lost or damaged, it may not actually be covered in a standard policy. It's important to seek clarification from an insurance agent on the actual coverage in these situations.



In light of these realities, many individuals choose to purchase additional insurance for a jewelry collection. When selecting insurance coverage inquire if there is a deductible. Will raising or lowering the deductible affect the policy's cost? What type of appraisal, if any, is required to obtain insurance? Most importantly, are the items fully covered for the replacement cost and will the policy cover any repairs required for damaged jewelry? There are a variety of insurance companies who specialize in coverage specifically for jewelry. These companies offer coverage in a variety of situations, including theft, damage and mysterious loss.

Author Resource:-> Lewis Jewelers is proud to carry the full line of Pandora Jewelry. Pandora bracelets, Pandora charms, and Pandora beads are only a part of the collection. For more information, Lewis Jewelers, 2000 West Stadium Blvd., Ann Arbor, Michigan, 48103, 877-88-LEWIS or visit the website.

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