Why Getting Your Jewellery Valued Is Important

Jewellery Valuation

Much of our jewellery holds sentimental value as well as financial value. If you lose, damage, or have your jewellery stolen it can be a very distressing experience. Think about an engagement ring - the sentiment attached to it can be huge. You want your insurance policy to meet the cost of a repair or replacement but what if it doesn't?

This would naturally add to your distress, cause disappointment and possibly financial hardship. What can you do to avoid this scenario?

Obviously, keeping your jewellery in a secure place out of sight is important. If you have a high value piece or large collection, you should consider getting a safe. Some insurance companies might require it too. It is also worth getting your items checked regularly to ensure settings and clasps etc remain robust.

It is vital that you insure your jewellery at its correct value. Many people often overlook the rising price of precious metals and do not consider it important to obtain regular valuations.

If you are unfortunate enough to have to make an insurance claim, you will need proof of the item's value if it was lost or stolen. Sadly, many people are unaware of this requirement.

Getting the right jewellery valuation is important as there are various types available. They include those for insurance, private sales, divorce, probate, and capital gains tax. You will need an insurance specific valuation.

Getting a jewellery appraisal doesn't have to be complicated, but you should consider the following:

Always choose a Registered Appraiser:

Choose an appraiser registered with a recognised regulatory body. The Institute of Registered Valuers scheme (IRV) are the official valuer’s network for the National Association of Goldsmiths (NAG) or the Guild of Valuers and Jewellers (GVJ).

Where to obtain an appraisal:

You have several options for obtaining an appraisal:

Go back to the jewellers where you bought the item. It might take a few weeks, so you might be without your jewellery for a while.

Some high street jewellers hold valuation days. If you decide on this option, it is best to book in advance.

You can arrange valuations via The Guild of Valuers and Jewellers by post. It may also be possible for a home visit.

What to expect from the appraisal:

Professional appraisals typically involve cleaning, weighing, measuring, and photographing your jewellery to create a valuation document. This should include a detailed description including the condition of the item along with hallmark information. The appraiser will also professionally estimate the amount that the item should be insured for.

Cost of the appraisal:

Before going ahead, it's crucial to talk about the costs with your chosen jeweller. They might charge based on time or a percentage of the item's worth.

Finally, keep your jewellery appraisal safe, possibly with your bank or solicitor. Remember to update your valuations every few years.

Are you insured?

You have an insurance policy, but have you read and understood the detail? It is vital to ensure you have the right level of insurance cover.

There may be a section called "unspecified items". This section typically caters for lower valued items. There is a limit for each piece and an overall limit. It is therefore important to ensure your jewellery comfortably falls into the categories covered.

Your valuables may be specifically mentioned in your policy. You should ensure the cover is adequate to fully replace the item in the event of loss or theft.

Make sure you comply with any requirements from your insurer such as keeping items in a safe.

To discuss how this might affect you or for a no obligation insurance quotation, contact our team today.

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