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Appraisals

Posted on April 13, 2015

WHAT IS A JEWELLERY APPRAISAL?

A jewellery appraisal is a process in which a professional examines a piece of jewellery and arrives at an estimate of its worth. It is an unbiased opinion as to the identity, composition, quality and value described in an appraisal document, which is the official report of the appraisal.

WHY DO I NEED A JEWELLERY APPRAISAL?

There are a number of reasons to seek jewellery appraisal services, ranging from the need to insure a piece of jewellery to the desire to price out jewellery before offering it for sale or for settlement of an estate.

INSURANCE APPRAISAL

Most Homeowner’s Insurance Policies insure luxury items including jewellery up to a maximum of $6,000.00. Some policies have stipulations that there is a maximum pay out on any one item. In the event of a loss you would be making a claim under your Homeowner’s Policy and paying whatever deductible applies. Even though your insurance company does not always require an appraisal in this case, it is definitely recommended so that you have your jewellery details documented in the event of a loss. In order to appraise your jewellery separately without deductible or for higher valued items your Insurance Company requires an up-to-date Jewellery Appraisal. For these jewellery rider policies your premium is based on the appraised value.

WHAT YOU SHOULD KNOW

Appraisals are often highly inflated from a true retail value in order to cover the fluctuation of jewellery store mark-ups. For this reason it is not a good way to validate the price you paid, but rather to confirm that the details of identity, size and quality of what you purchased is accurate. Due to the subjective nature of evaluation and because the Canadian jewellery industry lacks strict guidelines with regards to evaluation it is not uncommon to see 2 appraisers opinions of value vary significantly. Most clients seem to prefer very high values but don’t realize that this only increases their insurance premiums. It is in the client’s best interest to use the appraisal to document their jewellery details so long as the value is high enough to cover the replacement of the equivalent item.

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