Disclaimer: A blog on Jewelry Insurance Policies and Jewelry Insurance Appraisals...written by a jeweler and Graduate Gemologist who has used Jewelers Mutual Insurance Company for my business.  I am not an agent for any Insurance Company. This is based on my experiences. ~Mimi Brummitt.                                            https://www.brummittjewelrystudio.com/pages/appraisals

This week, the gold market hit an all time high breaking $2000.00/oz u.s. ($2064. At this writing) and the silver market is at a 7 year high hitting over $28./oz u.s. (at this writing).   

Your fine jewelry may be worth more than when it was originally purchased or appraised. It is recommended by your jeweler and your insurance agent that you have your fine jewelry values reviewed at least every couple of years.  After your documents are current, you then need to call your insurance company to determine if you have proper coverage.

Ask yourself these questions:

1.  What do you want to happen in case of a jewelry loss?
2.  Do you want the insurance company to write you a check or do you want the item to be replaced with a like item?
3.  How can I document my Proof of Ownership?

Emotion can greatly affect how you feel when you loose a piece of jewelry that is precious to you. Planning and preparing your jewelry insurance should be thoroughly thought out if you have to face that situation. Jewelry appraisals are often overlooked or put off because we are too busy, but that puts you at risk for not having an accurate appraisal in the case of the unexpected.


One prominent jewelry appraiser, Charles Ellias, summed it up well in "A Guide to Choosing a Professional Jewelry Appraiser":

“Protect yourself. It is always better to hire a professional now than to find out down the road that some of the most sentimental purchases you will ever make in your lifetime are not properly protected.”

What is the best jewelry insurance policy for me? 

Jewelry Insurance POLICIES other than Jewelers Mutual Insurance:

Can you feel confident about Homeowners and Renters Insurance concerning your jewelry insurance protection?  You can trust your home to your homeowners policy, but what about your jewelry?

1. A local N.C. Insurance Agent told me in a recent interview, “Do NOT rely on Homeowners/Renters Policies to insure jewelry!”

   1. In NC,  there is a limit to a $1500 TOTAL claim payout for jewelry theft, fire, hurricanes and civil unrest.   Some insurance companies allow an additional premium to allow for a $5000 limit with a per item loss payout of approximately half of the total value.  For ex. For $5k coverage, it may only cover one high value item up to $2500.00 and you still will have deductibles.   This varies per insurance company.

   2. The interviewed Agent said ” These policies are more expensive.” “Jewelry loss Claims can affect your Homeowners/Renters policy with increased rates, affect your ‘Loss History’ or your renewability with that insurance company. “ It is usually not enough to cover the full replacement cost of jewelry items.” 

2. The interviewed Agent recommends a ‘Personal Property Policy’ where you schedule your jewelry to be insured on a separate policy from your Homeowners policy.

   1. These policies cover loss, disappearance and physical damage with most insurance companies.

   2. It covers the item at its appraised value.

   3. DEDUCTIBLES: Most insurance companies will let you bind with no deductibles on the appraised value.

   4. APPRAISAL UPDATES: Updates on the appraised value are recommended every 5 years.  They will not reach out to you to do so. It is the policy holders responsibility to get an updated appraisal. Note: most policies have inflation value worked into the policy but not all companies.

   5. LIMITS: Depending on which state you live in, there may be a limit to $250,000 total value on a policy. (number of items does not matter.) The underwriter must approve any policy insured value limits and may disapprove and not bind the policy.

   6. No damaged jewelry is accepted for insurance binding. No I-3 Clarity diamond or chipped diamond is allowed for insurance. (This is the time for the jeweler and the client to discuss the possibly of recutting the diamond. In most cases it will increase the value of the diamond with minimal carat weight loss.)

   7. Geography - does your policy have “worldwide coverage”?

3. Appraisal requirements:

   1. The appraisal must be signed on a ‘certification’ which may just be printed on basic letterhead.  Some insurance companies do require a Gemologist to prepare the Jewelry Appraisal or the ‘certification’ will not be accepted.

   2. Gemologists credentials:

               1. Ask where they were educated…GIA…AGS…an appraisal guild?

               2. Is the appraisal overinflated to stroke your ego at time of purchase?  If so, you will only pay more in insurance premiums.  The client can choose the insured amount if they want to lower the value thinking the evaluation is overinflated.

4. Rates

   1. One local agent quoted $10/$1000. With a surcharge over $25k.

Why is JEWELERS MUTUAL INSURANCE COMPANY different?

THEY ONLY INSURE JEWELRY. They are the only insurer in North America that is solely dedicated to jewelry insurance. They have been in business for over 100 years founded in 1913.  They cover rings, necklaces, charms, earrings, watches and bracelets.

WHAT THEY OFFER:

1. COVERAGE AREAS - Worldwide coverage while traveling to Americans and Canadian clients.
2. ACCIDENTAL LOSS - If you can’t find it , its covered.
3. THEFT - Stolen jewelry is covered.
4. DAMAGE - You can have your insured jewelry repaired or replaced by your own trusted jeweler, not one that is assigned to you by the insurance company. If you chip a stone or pull a prong it is covered. It will be repaired or replaced with the same kind and quality as before.
5. MYSTERIOUS DISAPPEARANCE - It could be lost, stolen or hanging out in a drainpipe somewhere.  Even if you can’t explain it or when it vanished, it is covered.
6. DEDUCTIBLES - You can pick your deductible amount.  (You can get quotes on their website or I can provide a quote.)
7. STAFF - Their staff includes GIA grads, AGS Certified Gemologists and other industry experts.
8. You choose your own jewelry when its time for a repair or replacement to an insured item thru Jewelers Mutual.
9. CLAIMS - Hassle free claims for repairs or replacements. And claims do not affect your Homeowners Policy.
10. RATES - Where you live depends on your rate, but roughly it costs 1-2% of your jewelries value with JM. 

https://www.jewelersmutual.com/jewelry-engagement-ring-insurance-quote

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Note: The following articles were taken from  Jewelers Mutual Website.(jewelersmutual.com)

Ring Appraisal for Insurance: What You Need to Know

By Jessica VandenHouten Dec 13, 2019 (jewelersmutual.com)

Common Ring Appraisal Misconceptions

Right off the bat, let's clear up some of the most common misconceptions surrounding jewelry appraisals for insurance.

Myth: You don’t need an appraisal if you have a credit card receipt that shows how much you paid for the jewelry item

Truth: A credit card receipt likely won’t provide enough information. Insurance usually requires a detailed description of your jewelry, which you are more likely to find described on an insurance evaluation, appraisal or very detailed sales receipt.

Myth: You can't insure your ring until the appraisal or detailed description is complete.

Truth: We can't speak for everyone, but with Jewelers Mutual most customers can initiate coverage without submitting appraisal documentation. (There are some exceptions.) You do, however, need an appraisal (or other adequate documentation) at the time of a claim.

Myth: You can use an appraisal or detailed description that was done when the ring was purchased five years ago.

Truth: Jewelry values fluctuate. To ensure your ring's covered for the right amount, use a value determined within the past 2 years.

Now that you know if and when you need an appraisal, let's dive into what your appraisal needs to contain.

Details Insurers Look for on a Ring Appraisal

Your insurance company uses your appraisal to set the coverage limit on your policy. Basically, it helps them decide how much they'll pay out in the event of a claim (which also decides how much your premium is).

When you have a repair or replacement policy, rather than a traditional cash-payout, you definitely need all these details:

Description of the ring
Type of metal the stone is set in
Stone information – think 4 C's: cut, color, clarity and carat weight
Side stone information
Value of the jewelry
If your insurer doesn't know exactly what your ring looked like before, how can they replace it with same kind and quality?

Tips for Getting a Good Ring Appraisal

Not all appraisals are created equal. Here are some tips to make sure you get a good one:

1. Ask your jeweler for an appraisal, insurance evaluation or detailed receipt right away – it will save you the trouble of having to go back and ask for one later.

2. Make sure the jeweler or appraiser uses official business letterhead with their contact information in case your insurer has questions.

3. Ask your jeweler or appraiser for their credentials. Not just anyone is qualified to give appraisals. Don't know where to start? Check American Gem Society, the National Association of Jewelry Appraisers or Gemological Institute of America for a list of qualified appraisers.

Why Jewelry Appraisals Are So Important

Since jewelry insurance premiums (the amount you pay annually to maintain your coverage) are typically based on the value of the jewelry, what would happen if that value was incorrect?

If your ring’s value was overinflated, you could spend more than necessary to insure your piece. Or, the reverse could mean you’re underinsured and may incur additional out-of-pocket expense to repair or replace jewelry that becomes damaged or lost. Insuring your jewelry for its current retail replacement value is vital to repair or replacement.

You're not required to insure your ring, like you are with your car. So if you're going to make the (smart) choice to invest time and money into ring insurance, make sure it's for the right amount by getting a quality appraisal.

If you don't have jewelry insurance and would like to see how much it could cost per year, click the button below to find out in just minutes.

First things first. There should be no difference between a "jewelry appraisal for insurance" and any other type of jewelry appraisal.

All too often, jewelers hear, "I don't want to pay a lot for an appraisal. I only need it to get my jewelry insured."

Shelling out your hard-earned cash for something intangible, that you will hopefully never use, is never fun. However, there is no point in paying for your insurance if it will leave you hanging when you actually need it - all because you didn't want to pay more than the minimum to get an accurate, thorough appraisal.

The Importance of Jewelry Appraisals for Insurance

Any time you insure something, you need proof of the item's value and characteristics in order to replace it, whether with a same kind and quality equivalent or cash. In the case of jewelry, if you have an inaccurate appraisal, you may not recover enough funds from an insurance claim to actually replace your piece at fair market prices.

If you have an incomplete appraisal, what you know to be your cherished jewelry may not be how the insurer interprets the brief description of your piece.

Either way, you can wind up without an equal replacement for the jewelry you've been paying premiums to insure year after year. Kind of defeats the purpose, right?

Bonus: during the appraisal, many appraisers examine your jewelry for loose diamonds or stones, so that you can fix the issue before losing anything.

Typical Jewelry Appraisal Costs

Now that you understand the importance of an accurate, thorough appraisal, let's discuss the fees associated with such.

Start with the structure of the fee. Appraisal fees should never be based on a percentage of the jewelry's value. This is an ethical violation since the appraiser will make more money by valuing a piece higher, leaving incentive to over-inflate. Appraisal services should always be charged by the hour or a flat fee per piece.

Hourly rates typically range from $50 to $150, depending on the complexity of the jewelry. A simple wedding band will always cost less than a three-stone engagement ring; there's simply more to appraise with the latter.

A thorough appraisal will include:

laboratory work to inspect and gather facts about the piece
market research to compare like pieces
writing of the appraisal
Sometimes antique jewelry pieces or items with cultural significance may require an expert in that area. An appraiser that specializes in these areas may charge more for his or her services. Also, experienced appraisers who have been in business for a long time, may charge more, too, per pricescope.com.

The most important factor when seeking an accurate, reputable appraisal is the credentials of the appraiser. Check American Gem Society, the National Association of Jewelry Appraisers or Gemological Institute of America for a list of qualified appraisers.

Already have your jewelry appraised and looking to insure it? Get a hassle-free insurance quote by clicking the button below. It will only take minutes.

End of Article

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Jewelry Appraisals: What Everyone Forgets When Buying Jewelry

Buying a new piece of jewelry is exciting. You get lost in the sparkle and admire the way it graces your finger or lays just right across your collarbone.

You might think beyond the initial excitement to the cost of the piece, considering it’s likely to be a decent investment. But do you think any farther ahead than that? We think you should. Jewelry appraisals, anyone?

Why Get a Jewelry Appraisal?

Since jewelry insurance premiums (the amount you pay annually to maintain your coverage) are typically based on the value of the jewelry, what would happen if that value was incorrect?

If your jewelry’s value was over-inflated, you could spend more than necessary to insure your piece. Or, the reverse could mean you’re under-insured and may incur additional out-of-pocket expense to repair or replace jewelry that becomes damaged or lost. Insuring your jewelry for its current retail replacement value is vital to repair or replacement.

In addition to insurance-related risks, there are a few other compelling reasons to get a jewelry appraisal:

It substantiates proof of ownership in case your jewelry is ever stolen and recovered by police.
An up-to-date appraisal keeps record of the current value of your piece, in case you wish to sell it in the future.
Whichever reason compels you, you’ll need to know some basic terminology and industry guidelines to ensure you’re getting an appraisal from a qualified source.

 Appraisals vs. Diamond Grading Reports

Unless you’ve worked in the jewelry industry or are a seasoned jewelry purchaser, the terminology surrounding various documents that assess your jewelry is confusing.

A point-of-sale document, like a receipt or purchasing agreement, typically only provides a one- or two-line description and the retail value of the jewelry.
A diamond grading report is most often used when buying an engagement ring. It tells you everything you need to know about your diamond – essentially the 4Cs.
A jewelry appraisal assigns value to your entire piece, taking into account the setting and any stones.
Even within appraisals, many jewelers and appraisers recognize a few different types:

A replacement value appraisal details the cost to replace the jewelry with an item of same kind and quality – the current market price.
A comparable replacement value appraisal does the same, but for items no longer available. This is often used on estate pieces and antiques.
A fair market value appraisal is based on what price a willing buyer and seller would agree upon. This type of appraisal is used for estate settlement, tax liability, and other legal matters.
For new purchases, you’ll want to get a fully detailed replacement value appraisal.

Jewelry Appraisal Cost

A competent professional appraiser will charge for services by the hour or a flat fee per piece.

Fees should never be based on percentage of the value. Any fee that is based on a percentage is considered unethical because incentive exists to inflate the value to collect a higher fee.

On average, hourly rates range from $50 to $150, but it depends on the complexity of the piece. There’s laboratory work involved to inspect and gather facts about the piece, as well as market research to compare like pieces and the actual writing of the appraisal.

As with many other skilled services, you get what you pay for with an appraisal. If you’re offered a very low fee, you know the saying: It’s probably too good to be true.

In Conclusion:

Jewelry appraisals are often overlooked or pushed back until later – but that puts you at risk for not having an accurate appraisal in the case of the unexpected.

One prominent jewelry appraiser, Charles Ellias, summed it up well in "A Guide to Choosing a Professional Jewelry Appraiser":

“Protect yourself. It is always better to hire a professional now than to find out down the road that some of the most sentimental purchases you will ever make in your lifetime are not properly protected.”

If you’re not sure where to get a jewelry appraisal, we recommend American Gem Society and the National Association of Jewelry Appraisers for a list of appraisers by state. These organizations hold their appraisers to the highest standards of excellence, requiring specialized training in jewelry appraising and continuing education each year.

End of article

Thank you for reading my blog!  Please schedule an appointment to have us help you with your appraisal needs! 

https://www.brummittjewelrystudio.com/make-an-appointment

https://www.brummittjewelrystudio.com/pages/appraisals

Mimi H. Brummitt Graduate Gemologist GIA, Certified Gemologist, AGS

Owner/Managing Partner of Brummitt Jewelry Design Studio