Jewelry Appraisal – The Importance of An Appraisal
by Vanessa
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You’ve found the perfect ring and you’ve been shopping for engagement ring insurance, maybe you already found the best policy for your budget and needs. There is one more thing you will need to do before you insure an engagement ring. You’ll need to get a jewelry appraisal.
Engagement Ring Insurance Requires A Jewelry Appraisal
Not only is a jewelry appraisal important for your jewelry insurance company, it is important for you as well. A detailed and accurate engagement ring appraisal will provide you and your insurance company with the necessary information in the event that you need to file a claim. This diamond ring appraisal will help to settle the claim more quickly and fairly.
There are a few different types of jewelry appraisals done for different reasons. There is an estate appraisal, a fair market value appraisal and a replacement cost appraisal. To secure an engagement ring insurance policy you will need a replacement cost appraisal.
A replacement cost appraisal is done by a certified gemologist. It is basically a formal, expert opinion of a specific piece of jewelry as appraising jewelry isn’t an exact science. It should verify quality, authenticity, design and value of the jewelry appraised.
What Is Evaluated In A Ring Appraisal
The appraisal for your engagement or wedding ring insurance policy should contain the following information:
- A detailed description of the ring
- A detailed description of the cut and shape including weight and measurements
- Color grade
- Clarity grade
- Whether the stone is natural or synthetic
- Finish or diamond treatments
- Description of any engraving on the ring
- A clear picture of the ring
- The estimated cost to replace it
A Diamond Jewelry Appraisal vs A Diamond Certificate
A formal jewelry appraisal and a diamond certificate are two different things. A diamond certificate, also called a diamond grading report, is a document issued by a gemological laboratory. This grading report, completed by experienced diamond graders, provides a detailed description of the loose diamond, but it doesn’t provide a value.
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A jewelry appraisal, or diamond ring appraisal, examines the completed piece of jewelry and assigns a value to the full piece of jewelry. Because it provides a value you need to have an appraisal to get diamond ring insurance, a certificate or grading report won’t be enough. You likely want an appraisal for yourself as well so you know the value of your ring. If you simply want diamond insurance for loose diamonds that haven’t been set into jewelry yet you can just have the loose diamonds or diamond appraised.
Be Wary Of Cheap Jewelry Appraisals
If you’re taking the time to get a ring appraisal so you can buy diamond ring insurance to protect your valuable purchase you don’t want to cut corners by getting a cheap jewelry appraisal. This appraisal plays an important role in setting your premiums and it can affect the way a claim will be handled so you don’t want to skimp on the appraisal or you may be pretty disappointed with the ring insurance settlement process.
You may see offers for online jewelry appraisals but when it comes to appraising an engagement ring this isn’t a good way to go. Online appraisals are better for items that can be certified with pictures, detailed descriptions and receipts. Appraising diamond rings requires a hands on approach that includes testing and the use of specific equipment. It is better to find a qualified jewelry appraiser in your area for this job. If you feel overwhelmed by this and don’t know where to look you can try using the American Gem Society for help finding a qualified jewelry appraiser.
It isn’t a good idea to choose a jewelry appraiser based on the lowest quote you receive. The old saying “you get what you paid for” can come into play here. You are hiring a professional to do a professional job you want someone who will complete a thorough and knowledgeable appraisal. A cheap jewelry appraisal can actually cost you more in the long run. If you buy a ring for $7,000 but your ring appraisal is for $10,000 you will pay premiums based on the $10,000 but if the ring is lost and the replacement cost is only $7,000 you will have overpaid for premiums every year the ring was insured. This can add up to several hundred dollars over a few years.
Another potential problem of discount jewelry appraisals is if the appraisal isn’t detailed enough you may not get a true fair replacement if your ring is lost or stolen. If the appraisal doesn’t give enough or accurate details to explain the specifics of the cut, color and clarity these things may not be taken into consideration if the ring needs to be replaced.
Getting a jewelry appraisal for engagement ring insurance is an important part of the process. Not only does it help your insurance company know what your ring is worth in the event you need to file a claim, it also helps your insurance company set accurate premiums and it helps you understand the true value of your jewelry.
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