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Jewelry Insurance Appraisals - Important Information

07/03/2022 | Howard Fohlin

Insurance Appraisals For Personal Items - Short And To The Point

Insuring Jewelry on Your Homeowners or Renters!

Having your jewelry insured is more important than you may realize. It is also very inexpensive when you consider the amount of protection it provides.The majority of people do not know that jewelry, watches and custom pieces can be added to your homeowners or renters insurance.

All you need to do is add the jewelry item as a rider to your homeowner or renters policy. There is an additional cost however, it is minimal when you consider this additional insurance will cover jewelry lost or stole anywhere in the world and cover missing gemstones or damage caused by an accident, And the best part, there is NO deductible.

(extra fee every month. By adding the item as a rider you are adding special insurance just for that piece. So if the piece is lost, stolen or broken your insurance company will cover it NO deductible. )

Guaranteed to Appraise for Double is a Lie……

Most people don’t realize that Jewelry Appraisals are inflated to protect you over a period of time.THEY do not represent the current value of your jewelry. Appraisal values are inflated so that down the road 2-5 years from the purchase date if you were to lose an item, it can be replaced even if prices of gold, diamonds, and gemstones has increased.

Some jewelry Stores advertise that their jewelry is guaranteed to appraise for double if taken to another jewelry store, They tell you this because jewelers know that appraisals are inflated to cover people over a period of time for insurance purposes.  These jewelers also know that consumers think the appraised value is the actual current value of the jewelry item so the consumer thinks their getting a good deal.. This scam has been going on for years.

Another scam is jewelry stores over appraising the items they sell.  A salesperson will say “I am selling this ring for $2,000 but I’m going to appraise it for $4,000.  As if the appraised value is the actual value of the ring. No, the actual value of the ring is the $2,000 you just paid.

The real appraised value should be more like $3,000 and that's the amount you should be paying insurance premiums for, not a made up, overinflated, value.

Paying for new Jewelry Appraisals

If you buy an item from a jewelry store (and they) that does not offer a free appraisal, then consider shopping at another store.

Appraisal on new jewelry items purchased from a store are simple and easy to do because the store has all of the information.

Getting Jewelry Appraised

It is important to know who is appraising your jewelry and that these appraisers(those people) have the correct education to make the right calls. Most jewelry appraisers have little or no formal gemological training. We have tried to get laws passed in our own state requiring jewelers to be licensed like barbers and real estate agents however so far no States seem interested in closing this loophole.   

Why is it so important for the appraiser to be educated? Because an appraisal is something you hope you never need to use, but if you do need to use it, you would like all the information to be correct and the value quoted correctly so that you can either replace your item at no cost to you or cash out for the correct amount.

Our staff of appraiser are all GIA (Gemological Institute of America) Graduates. This degree is very expensive and very difficult to acquire but it gives our staff the ability to make the correct calls when grading diamonds and gemstones.

Prices vary with each appraiser but if they have the correct education and training you will find that these differences will be minor.  The next step is to make sure they are affordable. For example, we are the most affordable appraisal service in NH charging only $95 an hour and generally, we can do three items an hour. Many stores charge per item and this adds up quickly so make sure you shop around to get the best pricing.

Important Notes

  • Add Your Jewelry as a rider to your homeowners or renters insurance.
  • You will be covered no deductible
    • New Jewelry Should Come With A Free Appraisal
    • The Appraiser Should Be performed by A GIA Graduate
    • Shop Around For The Best Pricing
    • Appraisals are not always a representation of the current value of your jewelry
    • Appraisals are protection from both loss of the item and also the loss of individual gemstones.  This insurance will also include repairs caused by damage
    • The appraised value is not necessarily the amount of money you will receive from the insurance company.  The insurance company has the right to base the amount of the coverage on the jewelry’s current replacement value, at the time of loss.
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