In today’s market, keeping your jewelry appraisals up-to-date on your insurance policy can save you money in the case of an unfortunate event. More than $1 billion in jewelry is lost or stolen in the United States every year. A recent survey conducted by the National Association of Insurance Commissioners reported that 59% of consumers have not compiled a list or inventory of their possessions. Of those that did, 27% did not include photos and 28% did not have a backup copy kept in a safe place. Whether it’s emotional or monetary, protecting your assets and taking the time to appraise, list and insure your precious pieces will give you peace of mind down the road.
To ensure a timely and fair settlement of a claim, you should obtain a current appraisal on any new piece of jewelry and update appraisals on your existing pieces to confirm that your insurance policy reflects the fair market value. Experts agree that jewelry appraisals should be updated every two to four years. Since some insurers include jewelry replacement as part of the policy, having an up-to-date appraisal can ensure that your replacement will be of the same size, cut and quality as the original.
Standard insurance policies generally pay from up to $1,000 to $2,000 for jewelry loss from fire, storms or theft; however, coverage for lost or misplaced items may be considerably lower with limited coverage – and that’s after paying your deductible. Purchasing a jewelry “floater” to add on to your policy provides full protection for each item on your inventory list to include fire, theft, loss and damage anywhere in the world.
There are several jewelry coverage options that are available for insuring without a deductible at full market value. One option is itemized coverage, which allows homeowners to list a separate value and description on each individual piece of jewelry. Blanket coverage, on the other hand, provides a combined limit of coverage for many items without the need to list each one separately.
There may be situations where a jewelry appraisal is required. Here are a few examples:
• Determining value for estate purposes
• Determining authenticity between costume and genuine jewelry
• Determining the value of inherited jewelry for insurance or sale purposes
Whether you’re insuring a new piece of jewelry or a valuable estate piece, having up-to-date appraisals will give you peace of mind. While no one wants to think the worst will happen, but being prepared can save you money down the road.
These are just a few tips about the importance of jewelry appraisals from Granite Transformations. Please share your tips and stories in the comments section below.