Jewelry, Insurance, and Appraisals.  Oh, my!  Part 3

The Importance of Clarity and Integrity

We’ve been talking about the process of sorting through your jewelry box to evaluate the need for insurance and insurance documentation.  We’ve looked at what might fall under the “unscheduled” jewelry section of your insurance and what jewelry might need to be

listed separately.  You’ve determined what pieces you want to insure.   Now what?  Time to consider getting insurance documentation, which most people refer to as an appraisal, although that term isn’t really specific enough.    What should your insurance documentation contain?  Here are the specifics:

  • Current retail prices in the regional market
  • Cut, color, clarity and carat weight of diamonds and other gemstones
  • Type and number of diamonds and other gemstones used
  • Weight of the precious metal used in the mounting
  • Type and number of gemstones
  • Origin of the materials used
  • Craftsmanship of the piece
  • Manufacturer’s marks including brand name, serial numbers, and model numbers for pieces like watches

And pictures, with a measuring device shown so the perspective and size can be judged.  Why is all this info necessary and important?  Because with most insurance policies, the final determined value is only used for two things- for the insurance company to figure your premium payment and to cap their liability.  It does not necessarily mean you will get something of that value in the event of a loss.  The insurance company relies on the description of the item in order to replace it.  Without thorough information, details will be interpreted by the replacement agent, and not necessarily in the customer’s favor.  It is well worth the cost of a professional appraisal complete with specific details so that you can get replacement with an item of like kind and quality.  Hopefully now you’ve a better understanding of how insuring your jewelry works.  Let us know your questions!

Please note:  We are not insurance agents nor do we profess to understand all the policy choices available.  The info is based on our experience.  Check with your insurance agent to get the specifics on your policy.  And if you would like help sorting, give us a call.  We’d be happy to sort through your jewelry and give you some direction (there’s no cost for this service).

 

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