Jewelry appraisal for insurance, why is it important?
Picture this: you recently got engaged and have the most intricate diamond engagement ring you will cherish forever. Its sentimental value is worth hundreds and hundreds, but it's also worth a similar amount in pesos because of the different materials and gems used to make it. With something as unique as this, you'd want to do anything to protect it.
Protect your valuable jewelry by considering insurance for it. Jewelry insurance isn't available independently in the Philippines; however you can add a rider to secure this type of investment through real estate related plans. Ask your insurer on what the scope of the rider insurance is. If that's still not an option, international companies do offer such policies and appraisals could be used as eligibility criteria when having your jewelry insured abroad. Read on to learn more about the significance of getting a jewelry appraisal for insurance.
Why Get Jewelry Appraised— and Insured!
Before anything, if you've never availed of any type of appraisal before, here's a quick overview. A jewelry appraisal is a document that contains all the characteristics of a piece of jewelry along with an approximate value based on the assessment of an appraiser. Depending on the appraisal type, an item's value could change.
If you're wondering whether you really need a proper appraisal for insurance purposes, the answer depends on insurance companies and their rules. But more often than not, they'd ask for an appraisal to know how much your piece is worth. Besides this, you'd also personally learn more about the details of your beloved item and have physical proof that you own it.
Benefits of Getting a Jewelry Insurance
Feel at peace knowing that your pieces are secured - For peace of mind, it's normal to want special items, such as jewelry, insured. If something happens to your house (we hope not!), you can get a certain amount should your piece get damaged or lost.
Have a backup in case your piece needs replacement or repairs - Some insurance also covers damage and repairs. As much as we try to avoid getting harmed or broken since these pieces are worn, it's also open to different situations that can break them. Insurance allows you to make any necessary repairs without having to pay too much,
It's worth it - Getting a rider with your real estate insurance would cost more and take some time. For this reason, some people opt out of getting additional coverage. However, if you're someone who has many big-ticket items or pieces, this additional cost could benefit you more in the long run.
How Insurance Replacement Value is Determined
A qualified jewelry appraiser can determine the replacement value. Let us look at some details that an appraiser considers during the appraisal process:
Quality and weight of the gemstone - The primary consideration in valuing a piece of jewelry is based on the 4C’s: color, clarity, cut, and carat weight. The appraiser uses different gemological tools during the appraisal process for objectivity.
Origin and branding - Jewelry of a specific origin and brand would be more valuable than something similar with an unclear origin or brand. The appraiser looks for stamps or markings to help them identify the brand. The jewelry's age and condition are also considered in determining its value.
Current market values - When determining the replacement value of a piece, there's no way to identify how much the same piece would cost in the future. With that, the appraiser would estimate current market values based on how much similar pieces or jewelry materials cost at the time of the appraisal.
How often should jewelry be appraised?
Jewelers recommend having a piece of jewelry reappraised every 3-5 years. The value of jewelry keeps changing, so an outdated appraisal might be inaccurate. Having a current appraisal ensures that the value assigned is based on what your piece is truly worth.
Cost of Jewelry Appraisal for Insurance
Jewelry appraisal costs depend on the appraiser and your jewelry piece. For example, more intricate designs would cost more than simpler ones. You'd also have to consider the background of a reputable jeweler or appraiser as they might charge more, especially if they're using complete tools and have their own lab - both of which ensure that you're getting a legitimate appraisal.
Just stay away from some appraisers who are basing the appraisal cost on the approximate value of the piece. For instance, they shouldn’t be getting ₱10,000 just because the appraised value costs around ₱50,000. Instead, professionals can give you a quote (sometimes for free) of how much you’d spend by viewing your piece before the appraisal process. You can then base your decision to proceed with the appraisal on this.
Appraise your jewelry through Willyn Villarica Jewelry
If you want your pieces to be fully covered along with your housing insurance policy, it's really best to find an appraiser you can rely on. The professionals here at Willyn Villarica Jewelry's got your back. Inquire now! Send an email to email@example.com. You can also reach out to us through our Facebook page (Willyn Villarica Jewelry) or Instagram (@willynvillarica_jewelry).