Jewelry Insurance

Jewelry insurance is often the primary objective when clients seek out appraisal services. Insurance companies will require it for items over a certain minimum value. The exact details will vary from company to company and even state to state but it’s usually about $1000.

The insurance company may require it, but they’re not the ones who benefit from it and, in most companies, their standards are quite low. Yours shouldn’t be.

At a minimum, you should require a few basic things in a jewelry insurance appraisal.

1. A signature and a c.v. explaining who that is and their credentials for doing the work, including equipment and references used. An effective date and details of what they did. For example, did they personally examine the piece? When? Contact information.
2. A complete description of the piece with enough details that it will be possible to replace the piece with another of ‘like kind and quality’ in the case of a loss.
3. Sufficient photos and sufficient detail to do a replacement.
4. All the details you want to be considered including designers, karatage on the metals, identification and grades on the stones, manufacturing techniques, etc.
5. Critical outside references. For example lab grading reports on diamonds that may have been used or the manufacturer’s model numbers if appropriate.
6. Statement of condition. Is it damaged as of the date of inspection? If so, how?
7. Definition of ‘value’ and an explanation of the market being described.

In the appraisal business there’s an oft used standard called the Uniform Standards of Professional Appraisal Practice (USPAP). This is not required and it’s rarely used outside of legal circles. It includes all of the above and quite a bit more. I’m setting a very low bar here.