Engagement ring embodies emotions and beautiful memories for life. This makes it a priceless asset even though it has a market value. With time, the value of jewelry rises and to ensure that your valuable asset remains safe, you must insure it. For this, you require a jewelry appraisal for insurance.
A reliable company providing online jewelry valuation like Prestige Valuations can be approached for an appraisal of your engagement ring. They also provide a luxury watch and handbag valuation.
An appraisal will come in handy to get insurance or if you plan to sell it during a financial crisis. Let’s understand the steps involved in jewelry appraisal.
Understanding The Process Of Jewelry Appraisal?
Jewelry appraisal entails a thorough process that an appraiser follows to determine the accurate market value of your jewelry item. The estimated value is based on various factors. A professional appraiser will check the quality and weight of the precious metal or metals used to craft your engagement ring. The skilled appraiser will also check the quality and carat weight of diamonds and gemstones studded in the ring.
The age, condition, brand, design, demand and market trends are also considered while determining the value of the ring. The same process is followed for all types of jewelry items when getting a jewelry appraisal for insurance.
Your insurance company will require the replacement value of your engagement ring and jewelry items you got appraisals for. If you wish to sell your jewelry, in that case, the fair market value is taken into consideration. Remember, both, the replacement value and the fair market values are different.
Jewelry Appraisal For Insurance
Your engagement ring and other jewelry pieces are precious. You must get your coveted pieces insured just to ensure their safety. Imagine a situation when your engagement ring is stolen, lost or damaged. An offline or online jewelry valuation can keep the value of your special ring and other jewelry pieces intact.
When you buy an insurance for your jewelry, an appraisal value is used to determine your premium and the value you will get at the time of claim.
At the time of insurance claim, the appraisal document will be required by your insurance company to fulfill the claim. They will use the replacement value of your precious item to purchase a similar piece within a certain deadline.
This is how a luxury watch and a handbag valuation document will also be used by your insurance company.
Whether you have a fine jewelry collection, luxury watches or a collection of handbags, you must get an appraisal. Getting your appraisal updated every two to three years is also crucial. Compared to the high value of your precious items, the appraisal fee is too small. So instead of ignoring appraisals, consider the safety of your valuables as the top priority.
Documents Required For A Jewelry Appraisal
Whether you require an appraisal for insurance or selling purposes, you will have to provide the following documents and things to the appraiser:
- Receipt to prove your ownership and authenticity.
- High quality pictures of your jewelry pieces.
- Diamond grading report, if you have it.
Jewelry Appraisal Report
A jewelry appraisal report will have all details about your jewelry. There will be a mention of precious metals used to craft the jewelry piece. All details about diamonds and gemstones too will be mentioned, including the quality, cut, carat, color and more. Pictures from all angles will be included in the report. And finally, the appraiser will mention the estimated value of the jewelry piece. The appraisal value will be determined by the appraiser, considering the factors mentioned above. The market trends and demand for your type of jewelry piece will also be considered.
