So you’ve finally got that dream wedding ring you’ve always wanted, and you’re pretty excited. Well, if there was ever a time for excitement, this is probably it. But hold on for a bit. There are a couple of important things that you need to do as soon as possible – get your ring appraised and insured.
You might be wondering why it is so essential that you should do this straight away. The fact is that there is nothing quite like having the peace of mind knowing that your investment is secure and covered by insurance. Your ring might hold sentimental value to you, one which is immeasurable. But the least you can do is protect yourself from monetary loss.
As far as selecting insurance policies go, you have a couple of options. You could go for a homeowner’s policy with a rider covering the ring, or you could insure the ring separately. In both cases, you would have to get your ring value appraised.
Why get an appraisal?
You bought your ring or band for a price. You might think that this should be the value that your insurance covers. But this is not the case. You will have to get a separate appraisal for insurance purposes. This is the amount that your insurance policy will cover. There is no way that an insurance company will take your word for the ring’s value. It is not the matter of trust or anything, just protocol. An insurance underwriter will want an appraisal from a reputable source before finalizing the policy.
Your buying receipt is of no use either. The underwriters don’t care how much you paid for the ring, all that matters is how much it is valued. It is best to get an appraisal at regular intervals to make sure that in case of loss, your insurance company finds it easier to value this loss and cover it.
What is an appraisal value for insurance?
An appraisal for insurance is a detailed investigation of your jewellery to give it a value. It establishes this value by taking into consideration the size of the gemstones or diamonds, their chemical properties, as well as the metals used in the making.
Think of it this way. The appraisal value is the highest amount your insurer will cover you against when you try to replace your lost ring with a similar one from the market. This value is basically the maximum replacement value that an insurer will pay you if you lose your ring. It is also the value that the insurance company will use to calculate your premium.
Ordinarily, an appraisal value will be much higher than your buying price. In most cases it will be around 50-100% over the price. Don’t confuse this with its ‘real’ market value though. You will never be able to get the appraisal value of your ring in the open market.
You might be asking yourself, why is the appraisal value so much higher than the price you paid. The thing with replacing jewellery is that it is not always possible to get an exact copy of what you lost. If a lot of time has passed since the purchase, the price might have increased many times over. The prices of precious metals and gemstones do tend to vary over time and you need protection from that. So having a higher appraisal value now allows you the flexibility to get replacement jewellery that is close to what you lose in the future.
Where to get an insurance appraisal from?
Many jewellery shops offer appraisals, sometimes free and sometimes with charge. You can also find small independent appraisers or specialized insurance appraisers that will do this for a fee. It is best to get your ring appraised from an independent source rather than where you bought it from. Sellers might be inclined to give you a higher valuation just to make you think that you got a great deal from them.
Always make sure you do your research beforehand. Review the qualifications, experience and reputation of your appraiser. You don’t want to end up paying a higher premium because the valuation was too high, neither do you want your appraisal value to be too low to cover your loss when you need it.
Also always make sure you disclose to the appraiser that you are using his services for insurance purposes. This can make a difference to the appraisal value that is assigned to your ring. Many appraisers fix their fee as a percentage of the valuation they arrive at. Try and avoid such an arrangement since there is always the risk of the appraiser inflating the value just to get a higher fee.
This article was written by a guest author. Katie Jones has a passion for digital marketing and communication. She has worked for a range of companies specializing in all kinds of products and now manages outreach at Orla James, a wedding rings company.
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