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You’ve gifted the perfect diamond engagement ring to your partner or discovered your dream emerald necklace you’ve spent years searching for. Perhaps you’ve even organised insurance to cover these precious pieces. But that’s not the end of the story!
The value of your jewellery can fluctuate, meaning that over time, the amount your pieces are insured for also varies. This makes updating your insurance policy important. But with a jewellery valuation or appraisal, you can make this process simple and stress-free.
This guide unpacks the importance of engagement ring and jewellery valuation. We explore the process of valuation, the aspects that affect jewellery prices, and ways to ensure you maintain the right coverage over time.
Table of Contents
- What is a Jewellery Valuation?
- Why is Jewellery Valuation So Important?
- How Much is My Jewellery Worth? Answering the All-Important Question
- What Happens if I Don't Get My Jewellery Valued?
- How Often Should I Get My Jewellery Valued?
- What is the Cost of Valuing Jewellery?
- Why Securing a Professional Revaluation Matters
- Conclusion: Choose JewelCover & Enjoy Complimentary Annual Revaluations!
What is a Jewellery Valuation?
A jewellery valuation is the process of having a qualified professional assess the current market value of your existing jewellery pieces. This sometimes differs from your initial purchase amount due to fluctuations in price of the materials in your jewellery and currency fluctuations that frequently occur.
Here's a simple breakdown of how a jewellery valuation works:
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Contact a Qualified Valuer: Look for a qualified professional who specialises in valuations. This could be a jeweller or gemmologist with professional accreditation.
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Schedule an Appointment: Bring your jewellery and any existing valuation reports to the appointment
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Evaluation Process: The valuer will meticulously examine your piece, considering factors like gemstones, materials, and market conditions. More on this later!
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Valuation Report: The valuer will provide a detailed report outlining the jewellery's specifications, estimated value, and the date of valuation
Why is Jewellery Valuation So Important?
Jewellery valuations aren't just about knowing the current market value of your pieces. They're important as they assist an insurance company in the determination of the insured value and are a key way to maintain the right level of insurance. Here's why:
Combating Underinsurance
Jewellery values can rise due to fluctuating metal prices and appreciating gemstones. An outdated valuation often leaves you underinsured, meaning a potential coverage amount that’s lower than your jewellery's true worth.
Streamlining Claims
A recent valuation report from a qualified valuer acts as documented proof of your jewellery's current value. This sometimes assists the claims process in case of loss, theft or damage, ensuring a fair settlement without lengthy debates about value.
Understanding Appreciation
Revaluations can reveal pleasant surprises. Maybe a gemstone has become more valuable, or your vintage piece's craftsmanship is now recognised. This could lead to increased coverage and changes in your behaviour to give you peace of mind knowing your cherished possessions are fully protected, such as installing security cameras or using a safe.
In short, regular valuations are an investment in your jewellery collection. They allow for adequate coverage, simplifying claims, and potentially uncovering hidden value. By taking this proactive step, you can cover your precious pieces accurately.
How Much is My Jewellery Worth? Answering the All-Important Question
During the revaluation process, the chosen valuer will carefully examine your jewellery, taking into account various factors that influence its current market value.
These factors include exchange rates, as precious metals and gemstones are often based on US Dollar values, so when the Australian Dollar drops against the US, it can greatly impact on the replacement value of the piece. Additional important factors include the type and quality of the metal (platinum, gold, etc.) and any gemstones, considering their cut, clarity, colour, and carat weight.
The valuer will also assess the workmanship, evaluating the skill and artistry involved in crafting the piece. Reputable brands or designers can add value, so this will be factored in as well.
Finally, the valuer will consider current market trends for similar pieces and account for any wear and tear that might affect the overall value of your jewellery. As an example, are there any stones that are chipped or show fractures. In some cases, some insurance companies may choose not to insure the item unless it is repaired.
What Happens if I Don't Get My Jewellery Valued?
Picture the following scenario. While it’s a hypothetical one, the story is all too common. Sarah inherited her grandmother's stunning diamond ring, a cherished family heirloom, on her 21st birthday. Back then, in 2010, a valuation placed its worth at $12,000. Sarah proudly added the ring to her insurance policy based on this value.
Fast forward ten years. Sarah, now married and busy with work, hadn't considered getting the ring revalued. Life moved on, and the ring remained tucked away in her jewellery box, brought out only for special occasions. Unfortunately, during a recent trip, Sarah's purse, containing the ring, was stolen. Heartbroken, she contacted her insurance company to file a claim.
Here's where things get complicated. Since Sarah hadn't had the ring revalued in all those years, the insurance company relied on the outdated valuation of $12,000. The problem? The natural diamond market had boomed in the past decade, and the specific characteristics of Sarah's grandmother's stone, a rare cut and clarity, had become highly sought-after. A current valuation would likely have placed the ring's worth closer to $25,000.
The insurance company, relied upon the original outdated valuation which Sarah had paid premium on, and as such offered Sarah a settlement of only $12,000. This left her devastated. Not only had she lost a precious family heirloom, but the insured value wasn't enough to replace a ring of similar quality.
This scenario highlights the importance of jewellery valuations. Skipping them can leave you underinsured, facing a financial gap in the unfortunate event of a loss. By getting your jewellery revalued regularly, you ensure you receive a fair coverage amount that reflects the true worth of your cherished pieces.
How Often Should I Get My Jewellery Valued?
To ensure you're adequately insured, you could get valuations completed at a minimum of every 3-5 years. Why? Because the value of precious metals and gemstones can outpace inflation, leaving outdated valuations and insufficient coverage.
Some insurance companies require these periodic assessments to maintain your policy's validity. At JewelCover, we offer complimentary annual revaluations of your insured pieces to ensure your pieces are valued at current market value before you renew your policy for another year. It is always a good idea to take your insured rings to your jeweller and have the setting and he general condition of your rings checked by a professional in case of any minor repairs that maybe required.
Wear and Tear
It is important to note that jewellery insurance policies most likely include a clause excluding wear and tear. You are responsible for ensuring your jewellery is maintained and in good condition.
What is the Cost of Valuing Jewellery?
In Australia, the cost of valuing jewellery typically starts at around $80-$100 and can vary based on the complexity of the piece, the valuer’s experience, and the purpose of the valuation.
However, some specialist jewellery insurance providers offer a free jewellery valuation in Australia. At JewelCover, we’re committed to ensuring that your coverage reflects the value of your most treasured pieces.
That’s why we offer complimentary annual jewellery revaluations. You’ll not only benefit from coverage against loss, theft and damage, but a comprehensive and consistent way to update your policy every single year with the help of our in-house experts.
Why Securing a Professional Revaluation Matters
Ensuring your precious pieces are properly insured requires a professional touch. While online valuation tools may seem convenient, they lack the depth and accuracy of a qualified valuer.
Here's why opting for a professional is key:
Expertise and Precision
A certified valuer possesses the knowledge and training to meticulously examine your jewellery, considering factors like material quality, craftsmanship, and market trends. This ensures an accurate reflection of your jewellery's current worth. Online tools often rely on generic data and may not account for the unique details that influence value.
Documented Proof
A professional valuation report serves as a crucial document for insurance claims. It provides detailed information about your jewellery and its value, streamlining the claims process and ensuring a fair coverage amount. Online valuations often lack the detailed documentation needed by insurers.
Conclusion: Choose JewelCover & Enjoy Complimentary Annual Revaluations!
As we’ve explored in the article, fluctuating metal and gemstone prices can easily render older valuations outdated, potentially leading to underinsurance. Here at JewelCover, we understand the importance of keeping your cherished jewellery properly covered.
That's why our jewellery insurance and engagement ring insurance in Australia includes complimentary revaluations by our expert jewellery consultants, every year. Our team works to eliminate the hassle and ensure your jewellery's value is always reflected in your insured amount.
So you can relax, knowing your treasured piece is adequately insured, and focus on creating lasting memories with it. Get your free quote online today and experience the simplicity of JewelCover.
This article is advisory in nature and is offered as a resource to be used together with your professional insurance advice. It is an overview only and is not intended as a substitute for consultation with your insurance advisor or other professional advice.