Ring Appraisal: What You Need to Know for Insurance
Getting a ring appraisal (or any other type of jewelry) isn’t exactly something you do every day, and the unknowns can be intimidating.
Reading: Where to get a ring appraised for insurance
Time to set the record straight on some common misconceptions about when a ring appraisal is needed, when not, and what details are required for insurance.
common ring appraisal misconceptions
From the start, 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 showing how much you paid for the jewelry item.
Truth: A credit card receipt may not provide enough information. Insurance typically requires a detailed description of your jewelry, which you’ll most likely find described in a highly detailed insurance appraisal, appraisal, or bill of sale.
Myth: You cannot insure your ring until the appraisal or detailed description is complete.
Truth: We can’t speak for everyone, but with the Jewelers Mutual Group, most customers can initiate coverage without submitting appraisal paperwork. (there are some exceptions). however, you need an appraisal (or other appropriate documentation) at the time you file a claim.
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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 make sure your ring is covered for the correct amount, use a certain value within the last 2 years.
Now that you know if and when you need an evaluation, let’s dive into what your evaluation should contain.
details that insurers look for in a ring appraisal
Your insurance company uses your appraisal to set the coverage limit for your policy. basically, it helps them decide how much they’ll pay in the event of a claim (which also decides how much your premium is).
When you have a repair or replacement policy, instead of a traditional cash payment, you definitely need all of these details:
- ring description
- type of metal the stone is set in
- stone information: think about the 4 c’s: cut, color, clarity and carat weight
- side stone information
- jewelry value
If your insurer doesn’t know exactly what your ring looked like before, how can they replace it with one of the same type and quality?
tips to get 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 assessment, or itemized receipt right away; it will save you the hassle of having to go back and order one later.
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2. Make sure the jeweler or appraiser uses official business letterhead with your contact information in case your insurer has questions.
3. Ask your jeweler or appraiser for their credentials. Not everyone is qualified to give appraisals. don’t know where to start? Check the American Gem Society, the National Association of Jewelry Appraisers, or the 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 generally based on the value of the jewelry, what if that value is incorrect?
If your ring value was too inflated, you could spend more than necessary to insure your piece. or the opposite could mean you are underinsured and may incur additional out-of-pocket costs to repair or replace jewelry that is damaged or lost. Insuring your jewelry for its current retail replacement value is vital to getting it repaired or replaced.
You are not required to insure your ring, as you are with your car. so if you’re going to make the (smart) decision to invest time and money in 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 might cost per year, click the button below to find out in less than a minute. no personal information is required.
There are so many benefits of an insurance policy through a jewelers mutual, but don’t take it away from us! See what our policyholders have to say.
Editor’s Note: This post was originally published on July 29, 2011 and has been updated for accuracy.