Appraisal question

[Summer]

Approximately ten yrs. ago I got an appraisal for a marquise diamond, that was once an engagement ring, when I had the stone set on a herringbone chain. At the time I had it appraised for insurance purposes. I never had a certificate for the stone. I don''t feel I need one now since I''m not selling it. I have other pieces of jewelery insured too and wondered, how often should jewelery be appraised for insurance purposes?

Thanks.

Summer

 

[newenglandgemlab]

Hi Summer,

It depends on the changes in the marketplace and what your insurance company requires. Rule of thumb, once every 5 years unless some drastic changes occur. We are happy to look over the old appraisals and give you some advice. Cindy

 

[oldminer]

A five year interval with the kind of slow inflation we have expeienced over the past ten years is not bad advice. One must be aware of the inflation rate, gold values and diamond prices to make a better estimate of "how often?" on should seek re-evaluations.

Some insurance companies automatically raise your coverage. This serves them by giving them more income. How right it is for value is a question I can't really answer. Sometimes it is fair, and other times there is not justification for the increase in value.

We have seen diamond prices moving up very slowly at wholesale for an extended period of time, but retail prices have not kept pace. Diamond retailing is undergoing stiff competition from both Internet and discount B&M retailers. Profits are the thing that has taken the hit while the public has gotten closer and closer to buying diamonds for very little mark-up.

You don't need to over-insure your jewelry, but you need sufficient dollar valuation if you choose to insure. Insurance itself on jewelry is certainly an option. We see people who have their jewelry insured who don't carry adequate health insurance coverage. Getting your insurance prioritized is one of the most important tasks of living within your means or within a budget.

We suggest covering expensive jewelry items and letting what amounts to lesser items go un-insured. Assume some risk yourself. Buy a floor vault, or lock the stuff up in a bank. Don't leave things sitting where a burglar can just find them in a few moments while you go out. Making your valuables secure can save you a lot of insurance premiums.

We often review appraisals for updating. It is a common task for appraisers. Just don't make yourself insurance poor by covering items that you rarely or never would wear.