Appraising And Insuring Your Jewelry
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Appraising and Insuring Your Jewelry
When it comes to appraising and insuring jewelry, accuracy and foresight are crucial. Unfortunately, I've seen many customers struggle when trying to get appraisals for lost, stolen, or damaged jewelry, often relying on memory instead of having proper documentation. Insurance companies typically won't accept evaluations based on recollection, especially after a loss. Here's a guide on how to properly appraise and insure your jewelry to ensure you're protected.
Creditable Appraisals
To ensure your jewelry is adequately insured, it must be appraised by a reputable jeweler. Ideally, this jeweler should be trained by the Gemological Institute of America (GIA), as their expertise provides a conservative and precise evaluation of your jewelry's worth. While GIA credentials aren't mandatory for all insurers, they certainly add credibility to your appraisal.
Your appraisal should detail the precious metal content, including weight, karat purity, and color. Diamonds and gemstones must be described in terms of shape, carat weight, color, clarity, and cut grade. If your diamonds are pre-certified by a grading laboratory, provide these documents to the appraiser and ensure the information is included in the appraisal. Request that the jeweler photographs the pieces and attaches these images to the appraisal. Keep a copy of this documentation in a safe deposit box or a fireproof safe.
Reassess jewelry appraisals every 7-10 years, as market values can fluctuate. Recently, some diamonds have doubled in value due to high demand. Without updated appraisals, you risk being underinsured.
Choosing the Proper Insurance Coverage
A common mistake is assuming homeowner’s insurance covers jewelry losses. Typically, these policies only cover $1,500 to $5,000 for personal articles, with deductibles of $500 to $1,500. Moreover, coverage may not extend to loss, damage, or diamond misplacement.
The best approach is to obtain a personal articles policy through your insurance agent. This should cover loss, theft, damage, and gemstone loss. Aim for a quote with no deductible. Jewelry insurance rates average $1.50 to $1.85 per hundred dollars of appraised value. To calculate your premium, multiply the appraised value by the rate and divide by 100. For example, a $10,000 item at $1.50 per hundred would cost $150 annually.
Local agents may lack expertise in jewelry-specific policies. If you need further assistance, consider contacting specialized companies like CHUBB Insurance or Jewelers Mutual, known for their competitive rates and comprehensive coverage.
Peace of Mind
Insurance may seem unnecessary until it's too late. Consider a wedding set worth $5,000 that you wear daily. Would you walk around with $5,000 in cash? Probably not, but that's essentially what you're doing with valuable jewelry. Insuring a $5,000 piece might cost as little as $75 per year, offering peace of mind and allowing you to wear it confidently and without worry.
For further information, visit [Andrews Jewelers](http://www.andrewsjewelers.com).
Andy Moquin
President, Andrews Jewelers Inc.
[http://www.andrewsjewelers.com](http://www.andrewsjewelers.com)
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