Insurance appraisals for homeowners and renters
 
Of all kinds of appraisals, the jewelry appraisal for the homeowner’s insurance policy is the most frequently requested. The report is given to the insurance agent who forwards it to the underwriter. It is then listed on a fine arts rider and made part of the homeowner's policy that protects the home and its contents.
  
The best insurance appraisals describe gemstones and jewelry completely and clearly, thus allowing a future jeweler and insurance adjuster to determine a proper replacement cost for the item. This report is an important document, similar to legal documents that protect families and their assets. If it is done once...correctly...it will never need to be re-written, only updated for current values on a regular basis.
  
Here are the most frequently asked questions about this important report
  
1. I have a document from the jeweler who sold me the item. Why do I need a professional appraisal?
The document from your jeweler contains information given to you during the sales presentation. This information
may be accurate, however it often incompletely describes the item, and therefore fails the test of a good appraisal.  
An expert who is independent of the sale, and whose job it is to describe your item and determine its average selling price so that you can be properly protected performs a true appraisal.
  
2. If I don't want to replace my item when it is lost, will the insurance company send me a check for the appraised value?  
Yes, if you have purchased a policy called "contract or stated value” coverage.  However, if you have purchased the most common type of protection, called "replacement cost," the insurance company usually pays you less than the appraised value. This is because the insurance company has strong buying power, and can generally replace your item for fewer dollars. Check with your insurance agent to determine precisely how your coverage works in the event you make a claim.
  
3. If I make a claim for an item, will my insurance company allow me to use my own jeweler to replace it?
Almost always, as long as your jeweler agrees to accept payment equal to the insurance company’s cost of replacement.
  
4. How often should I have my appraisal updated?
As often as you wish, but every 3-4 years is sufficient.
  
5. Is there a fee for updating my appraisal?
No, when I have written the original report.
  
6. Can you provide updates without seeing the jewelry again?
Yes, but only if this is permitted by your insurance company. Some companies require the appraiser to attest to seeing the piece again and to having examined its condition.
  
7. Can I have my jewelry listed on a fine arts policy that is from a company other than my homeowner's insurance carrier?
This may be possible under certain circumstances. Check with an independent insurance agent.
  
8. When you determine the value of jewelry for my insurance policy, do you use the value of the piece in
its pre-worn current condition, or do you use a value that would replace it brand new?
Your insurance policy promises to replace the piece in its condition, as a pre-worn item of jewelry. However, for many years, insurance companies have interpreted that language to mean they will replace the item brand new, since that is what the homeowner is really asking for. There are always exceptions, as with vintage timepieces, where the homeowner expects the insurance company to replace the item of that vintage, rather than a new model.
  
9. Does my insurance policy promise to replace my item with a duplicate?
Usually not. Their standard is: an item of like kind, quality and similar utility, of similar value, and of course one that you would approve. Please ask your agent if you wish to obtain coverage for your item that would allow you to replace it with a duplicate, and then also discuss your request with your appraiser.
  
10. If I do not schedule my jewelry on a separate fine arts policy, doesn't my regular homeowner's policy
offer me coverage?  
Yes it does, but it is limited.  The limitations usually are:  

a.  There is a deductible you must pay for each claim, and it is sometimes large.  

b.  There are a maximum number of dollars you may claim for any one item.  

c.  There are a maximum number of dollars that you may claim for all items together. Should you choose this method to protect your jewelry, your adjuster may still require a description of the item and a value. Sometimes the original sales invoice is helpful; other times an appraisal is the correct way to document this information.
  
11. Will you appraise on line, if I email the description of my jewelry? No.
  
12. Can you provide two appraisals for me, one for homeowner’s insurance, the other to help me understand
the value of my items if I want to sell them? Yes.
  
13. My insurance agent suggests I increase my coverage by 5% each year.
I respect your agent's interest in providing up-to-date protection for your fine jewelry, and I would be happy to examine your appraisal each year for that purpose. However, I do not favor an across-the-board automatic percentage increase.

14. Can you identify my gemstone and grade its quality without writing a full appraisal?
Yes. Here is a list of my laboratory services, which do not require a determination of value.
 
a.  Gemstone identification
 
b.  Gemstone quality identification
 
c.  Identification of enhancements to gemstone color and clarity
 
d.  Geographic origin of gemstones
 
e.  Corroboration of independent laboratory reports
 
f.   Plotting the flaws in diamonds and colored gemstones
 
g.  Authentication of timepieces, including estate and antique
 
h.  Identification of silverplate and sterling place settings
 
i.   Reports on damaged gemstones, including cost to repair, estimated of repaired weight, and replacement cost
 
j.   Identification of flaws as natural origin or a chip