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appraisal Archives - Dale Robertson Jewelry

Do you need your jewelry appraised?

I’ve heard from 2 customers recently that their experiences with insurance on their jewelry didn’t go well. A woman lost her ring and filed a claim with the insurance company. She was dismayed when the check she received would not come close to allowing her to replace the lost ring. The insurance company had an old appraisal from 20 years ago. They insured her ring for that amount. They did not ask for a more current appraisal any time since originally writing the policy, which meant they never increase the policy to match current replacement costs. So, if the ring was insured for $2000.00 based on the 20-year-old appraisal, that’s all they would pay her for the ring if/when lost, meaning $2000.00 for a ring that would cost considerably more today.

The second customer recently changed insurance companies. He had appraisals from about 10 years ago. The insurance company asked for current appraisals. When new appraisals were not issued, the insurance company dropped the coverage and sent the customer a refund on that part of the policy, leaving him without any coverage for the many pieces of jewelry he owned.

In each of these instances, the customer was grossly underinsured and one was not “made whole” while the other would not have received anything if a loss occurred.

While I’m not an insurance agent, and don’t have a current license to sell insurance and cannot offer insurance advise, I will give you some ideas to ask your insurance professional about.

Most insurance companies expect that your jewelry appraisals are updated every 3 to 5 years. The prices of metals and gemstones fluctuate, going higher or lower by the day. Gold, for example, is nearly $1300.00 per ounce today, June 8, 2018. Over the past 10 years, gold was as low as $709.50 and as high as $1900.30 per ounce. Gemstones have similar cost changes.

Some questions to ask your insurance professional to be sure your jewelry is covered correctly in case of loss are:
• Ask how often you should have your jewelry appraised? Be sure to adhere to their guideline so your coverage is correct.
• Does your policy have a “cost of living” clause so your coverage increases as inflation increases?
• Does your policy cover against, “loss of, or damage to the diamonds or gemstones?” I’ve heard of diamonds falling out of the mountings and, since the client still had the mounting, the loss was not covered.
• Is there anything else you may need to insure your jewelry?

Please, do not have your jewelry insured for any phony original price from the stores that “give” you 40, 50 60% or more off the price. Your coverage should be for about what you paid for the jewelry because that’s the real price of the jewelry. Almost every insurance company I know will not pay you that phony retail if you lose the jewelry. They will only pay you what they, themselves can buy it for, and then give it to you.

There are other pieces of wisdom your insurance professional can give you, just ask them. When you need an updated appraisal, that’s where I can help you. As a Gemologist, I’m approved by my insurance company to do appraisals for you. I appraisal your jewelry here in the store when you need it, not when someone else comes into the store. I’ll first inspect your jewelry while you’re here. I’ll thoroughly clean your jewelry so I can see what you have. I’ll measure and grade each stone, determine an insurance replacement price for the jewelry, then print 2 copies of your appraisal; one for you and one for your agent. It’s that easy!

Why you should update your appraisals every 2 to 3 years

Pearls for appraisal

Owning a piece of jewelry, no matter the price range, is a meaningful keepsake for many people. Many celebrate a special occasion with a piece of jewelry or receive a special item as an inheritance.

Most people own at least one piece of jewelry. This may include necklaces, earrings, engagement and wedding rings, antique jewelry, custom jewelry, as well as estate jewelry. However, what most people don’t realize is the importance of protecting these valuables. As a result, getting an appraisal often gets shoved down the list of priorities. Whenever you purchase or receive a new piece of jewelry it is essential that you insure it in a timely fashion. This will cover your precious jewelry if something is to happen after getting it in your possession. It doesn’t matter if you have only one piece of jewelry or a whole collection; having an appraisal done for insurance purposes is a life saver when the unthinkable happens. Don’t believe me? Here are some reasons why you should have your jewelry appraised:

While it matters, your voice alone is not good enough in the event of theft, damage, or loss. Documentation from a certified source is required, and an appraisal can attest to the design, quality and condition of your jewelry.
The market is constantly fluctuating, so it is important to realize that value and cost are not the same. The value of gemstones, diamonds, and metal fluctuates daily. Even if your receipt states that you paid a certain amount, the market is never static so the value can change.
Knowing the value is essential to the insurance process. The value of your jewelry can affect your premium, and due to the fluctuating market values, your insurance policies should change accordingly.
Insurance companies will typically cover your jewelry if it is stolen to a limit. Damage or loss may have to be added to your policy, so it is vital that you check to see what is covered with your insurance agent. However, not all of the insurance policies you have may cover the full appraised value of your jewelry, so it’s important to update your policies regularly to ensure adequate coverage. If you’ve ever wondered why it’s recommended to update your appraisal every 2 to 3 years, the answer is simple, for protection and peace of mind! Because of the fluctuating market values of silver, gold, diamonds, and jewelry, it is important to stay on top of the changing market so you are current with inflation prices. The value of that wedding ring may change few cents from day to day, but the value can change dramatically over the course of a few years. This is why it is vital that you have a current, updated appraisal so your insurance agent can ensure that you are protected accordingly from the unexpected.

Here at Dale Robertson Jewelry, I specialize in providing my customers with comprehensive appraisal services. Remember, paying for an appraisal is a cheap investment for a big value, so if you are looking to have an item appraised, give me a call today.

Shared, in part, from Geolat.com

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