If it’s been more than a couple of years since you’ve had your jewelry appraised, the findings might surprise you. You could be underinsured.
Take Rolex watches, for example. Turns out they’ve out-appreciated real estate and the Dow Jones in the past 10 years, according to a recent Robb Report.
Likewise, the price of gold is up nearly 30 percent in the last five years.
“Many people are shocked when they find how underinsured they are,” said Krista Garcia, a certified insurance replacement and diamond specialist with Skibell Fine Jewelry. “A gold band purchased before the spike may not be fully protected. The older the appraisal, the less accurate the value it lists.”
Experts recommend reappraising jewelry every three years.
“You’ll not only be keeping your documentation up to date,” said Lyn Skibell, owner of the eponymous Preston Center jewelry store. “We’ll also clean your pieces and check for any needed repairs, like loose stones or a broken prong.”
Buying a new home — and new homeowners insurance policy — is the perfect time to take stock of what your jewels are currently worth.
A floater provides the broadest protection, covering losses of any type, including accidental — say, dropping your ring down the kitchen sink drain or leaving an expensive watch in a hotel room, according to the Insurance Information Institute.
Garcia’s best advice: Know what you own.
“Since appraisers are looking for specifics in jewelry pieces, microscopes are equipped with special lighting and scopes, and scales give specific jewelry-related measurements. All gems and jewelry are photographed, weighed, measured, tested, evaluated, and documented with a professional written report that’s thoroughly researched in the applicable markets,” she said.
“Plus, it should read like a story. You want to be able to close your eyes and visualize exactly what the piece looks like.”
As for choosing an appraiser, do your homework.
There are no federal or state licensing requirements the way there are for real estate appraisers, according to Jewelers of America.
A professional jewelry appraiser should be certified or titled by a respected national appraisal organization. Different types of appraisals require varying levels of training.
The American Society of Appraisers advises that a competent appraisal should:
- Clearly state the kind of value being determined, such as fair market value (used for tax purposes), the replacement value (for insurance coverage), or liquidation value (for bankruptcy or business dissolution).
- Describe the property being valued.
- Detail the procedures used to arrive at the estimate, such as an analysis of comparable sales.
- Specify the qualifications of the appraiser.
- Include the appraiser’s signature.
“Reputation in this business is everything,” Garcia said. “Moving is stressful enough. You don’t want to worry that your jewelry, especially family heirlooms, is being taken of.”
