Jewelry Appraisal and Its Role in Insurance Policies

While you’d like to think that nothing would destroy or damage your jewelry, you never know when things can take a nosedive. Therefore, it is important to always be prepared and take appropriate steps to protect the treasures you’ve built up after years of saving and hard work. This is exactly the time you need to learn more about getting your jewelry appraised and why it makes sense to pay for jewelry appraisal.

Role in Insurance Process

Whether you have a sentimental attachment to an heirloom piece that has been in your family for ages or you have just bought an expensive piece of jewelry to celebrate your anniversary, it is important to have proof of their true value. By getting this information, you can save yourself from intense disappointment. Sometimes, the true value of your jewelry is so high that your limited homeowner’s policy does not cover it. You may not know it until you come to make a claim and later realize your insurance company will not replace it because of limitations on your policy.

You will also need an appraisal if you’re considering taking a new policy or special endorsement. Your insurance provider will consider the appraised value to determine the coverage amount. Moreover, your insurance company will determine your insurance premiums considering the document which is why you need to have it appraised by an authentic jeweler.

Many people are under the impression that their homeowner’s policy covers their jewelry by default. That is not the case. To ensure your jewelry correctly, you need to have each piece listed as under scheduled items. The added advantage for scheduling your jewelry is that you are covered for additional risks, such as if the jewelry is stolen during travel or from a hotel.  Also, no deductible will apply when you file a claim for a scheduled jewelry item. The insurance company will bear the full cost of the replacement.

Sometimes, your insurance provider doesn’t offer any coverage for jewelry under a homeowner’s policy and you will need to take a new one especially for your jewelry. Whatever insurance option you choose, you will always have to produce a detailed appraisal to get a policy. It’s another misconception that you can get jewelry adequately insured using a sales receipt.

It is also important to keep the document valid. Because of how the precious metals and gem markets fluctuate this means having your items reassessed after three years. It is in your interest to do this especially if you are collecting fine jewelry as an investment. The idea of paying your premiums is so that you can recoup your losses after the theft and although payouts reflect market prices of the individual elements that make up the piece, it only in special circumstances insurance companies take into consideration the beauty of the craftsmanship or its sentimental value. You’ve usually paid significantly higher premiums for that level of service. An up to date appraisal and a history of doing this regularly helps build your case so that you are fairly compensated for your loss.