An appraisal provides an educated assessment of a jewelry piece's authenticity, quality, and value. Although primarily used for insurance purposes, appraisals can also serve to authenticate items for resale. However, they are not typically used to determine resale value.

Regular appraisals are advised by the Insurance Institute of America and leading jewelry insurance firms to ensure your items are accurately valued for replacement in the event of theft, loss, fire, and similar incidents. Appraisals establish the value your insurance will cover, providing peace of mind and financial security.

It's wise to update your jewelry appraisals regularly due to market fluctuations that can affect value significantly. The suggested frequency is every 3 years for standard jewelry pieces and every 2 years for items of higher value. Staying current ensures your insurance claims reflect the true worth of your jewelry, optimizing your reimbursement in case of loss or damage.

Not all appraisers are created equal, and unfortunately, the field isn't tightly regulated. Here's how to ensure you're working with a professional:

• Certifications: Look for appraisers with reputable certifications such as from the American Gem Society (AGS), the Gemological Institute of America (GIA), or the European Gemological Laboratory (EGL). These credentials indicate a high level of education and expertise.
• Equipment: A professional appraiser will utilize advanced jewelry identification equipment to accurately assess your piece. Don't hesitate to ask about the tools they use.
• Detailed Appraisals: Ensure the appraisal you receive is itemized. A thorough and accurate document will detail each aspect of your jewelry, contributing to its authenticity and value assessment.

Choosing an appraiser with these qualifications ensures a reliable and precise evaluation of your valuable jewelry.

Scheduled Insurance

Opt for Scheduled Insurance for comprehensive coverage on each piece of your jewelry. This specialized policy protects against all risks, including fire, theft, and damage. It may be added as a rider to your homeowner's insurance or obtained through a provider like Jewelers Mutual Insurance, offering the most thorough protection.

Unscheduled Insurance

Unscheduled Insurance is typically part of your homeowner's policy, providing limited coverage with specific per-item limits. It may not cover all risks. Always store your original appraisal safely, such as in a safe or safety deposit box, and furnish a copy to your insurance agent to ensure your precious items are adequately protected.

Imagine you're on a cruise and stumble upon what seems like a bargain for a piece of jewelry, such as a ring for $6,800. However, if the accompanying appraisal inaccurately inflates the value to $10,500, this discrepancy can lead to higher insurance premiums—about $60 extra each year based on the inflated value.

In the event of a claim, your insurance is likely to cover the cost to replace the item at its current market price, which would align more closely with the actual purchase price of $6,800. As a result, the extra premiums paid based on the inflated appraisal value become unnecessary costs that do not translate into additional coverage or benefits.

This example underscores the critical need for accurate appraisals, ensuring that you are neither overpaying for insurance nor risking underinsurance that could lead to out-of-pocket expenses when replacing a valued item.

Investing in a professional appraisal might initially seem like an additional expense, especially when compared to simpler, less detailed valuations provided by some jewelers. At Park City Jewelers, our appraisal services begin at around $100, with variations depending on the complexity and detail of the jewelry piece. For example, a bespoke item adorned with a multitude of differently sized gemstones demands more in-depth analysis than a straightforward solitaire ring, thus influencing the appraisal cost.

However, this upfront investment in a professional, comprehensive appraisal safeguards you in the long term. Accurately appraised jewelry ensures that you're adequately covered without the risk of overpaying on insurance premiums. More importantly, should the need to file an insurance claim arise, a precise appraisal from a qualified expert significantly lowers the chance of claim denial due to inaccuracies. Ensuring your cherished pieces are evaluated correctly not only provides peace of mind but also guarantees financial protection and security.

It's a common misconception that jewelry can be sold for the appraisal value listed on its certificate. However, the reality is that the resale market often does not reflect these appraised values. When considering selling a piece of jewelry, it's essential to temper expectations and understand that the appraisal value is primarily used for insurance purposes and not as a guaranteed resale price.

This understanding is crucial for setting realistic expectations and making informed decisions when it comes to selling your jewelry. The appraisal value serves as an important tool for insurance and authentication but does not necessarily determine the piece's resale value in the current market.