You have just moved into a new apartment or home and need to get home owner's insurance. You find a company that gives the basics – replacement costs, loss of use coverage and the like, but the insurer will only cover up to $2,000 in loss or theft of jewelry as part of its “unscheduled” property. So, what should a smart consumer do?
Have your jewelry appraised by a certified appraiser and use the appraisals to attach a rider – an extra policy – to your home owner's or renter’s insurance. Most insurance companies charge about the same rates for insuring jewelry. The cost of the insurance is less expensive if the items are kept in a vault. For example, a $10,000 ring if worn would cost about $190 a year to insure while if it were kept in a vault, it would cost about $14.
Most insurance companies request an appraisal for items above a certain value for their home owner's policy. The appraisal validates their existence and condition and determines proper coverage and premiums for the policy. These appraisals are then consulted at the time of loss, theft or damage to assist in the replacement. The jewelry replacement value reflects the price that the client would most likely pay for one of the same or similar description on the date of the appraisal. That way, the insurance company can replace the jewelry instead of paying cash.
An appraiser will determine the worth of the jewelry and the insurance company will base its premium on the replacement cost of the items. That means you want to get an honest appraisal.
A good appraiser will go over jewelry piece by piece, weigh it, measure the gemstones, grade them and test them for authenticity.
And like everything else in the marketplace, values change over time so it’s best to have those appraisals updated every two years or so.
The original appraiser should be able to update those values without having to go through the entire process again.
If you lose your jewelry, you have a document describing your item in exact and extensive detail – stone measurements, clarity and color – quality and value of the item. With this information, you can get this item replaced with a similar one.
While you should clean your jewelry before getting it appraised, a good appraiser will clean your gemstones before appraising them. You should also have jewelry repaired before having it appraised.
Bring the appraiser copies of any sales receipts or other documentation you have about the items being appraised, including GIA, AGSI or EGL certificates for comparison. And write down any questions or problems you may have had with your purchase of the jewelry being appraised so that you won’t forget any major points of concern.
An appraiser will inspect your jewelry; the gemstones will be measured, graded, tested for authenticity and plotted.
Jewelry appraisers charge by the hour. You should never work with anyone who charges a percentage of the item’s worth. It is usually more cost effective to bring in a number of pieces at once, rather than appraising them individually.
For more information, contact Aimee Berrent G.G. - A Matter of Brilliance, 70 Walnut Street, Wellesley, MA, at 617-304-0174 or at: ambappraisal.com
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