At some point, many of us will find ourselves shopping for fine jewelry. Typically, as is the case among young adults, many embark on a mystical quest for an engagement ring—perhaps one of the most important purchases of anyone’s adult life. No matter where you find yourself shopping for an engagement ring, it’s important to ask questions. There can be many. Most commonly, jewelers are asked things like, “What if I need my engagement ring resized?” “Is there a jewelry warranty?” “What should I do about insuring my engagement ring?” The last question is absolutely critical. While your jeweler won’t have all the answers (they aren’t insurance agents, after all, but they are often knowledgeable), the one thing they should equip you with is a jewelry appraisal.
Let’s pause for a second—you may be asking yourself, “Why do I need a jewelry appraisal?”
Great question.
What Is a Jewelry Appraisal?
A jewelry appraisal, most often conducted by jewelers, is a professional statement of replacement value for a piece of jewelry you purchase or already own, based on a number of factors, like the cost of the raw materials, the grade of materials used (for example, platinum, or 14K white gold vs. 18K yellow gold), the diamond’s cut, color grading, clarity, and carat weight of the stones—against current regional market conditions. Even for branded, high-end pieces and luxury watches—it helps to get an appraisal, because of fluctuations of market values on collectible items of real or perceived rarity.
Why Do I Need a Jewelry Appraisal?
Insurance, of course! While there might be other scenarios where having an accurate, up-to-date jewelry appraisal would be beneficial, the most common reason you need a jewelry appraisal is for insurance purposes.
Remember what we said the appraisal usually reflects? Replacement value. That amount is absolutely critical when it comes to jewelry insurance because it determines how much you should insure the piece for, should it ever get broken or go missing.
How Often Should I Have My Jewelry Appraised?
It’s up to you, but generally speaking, it’s a good idea to have your jewelry reappraised at least every 2-3 years. It’s always helpful to know what your jewelry is worth, and your jewelry insurance company may require you to give them updated appraisals every so many years to ensure your investment isn’t underinsured.
One jewelry insurance company that does not require you to get a jewelry appraisal every few years is BriteCo. BriteCo is unique—while they are a jewelry insurance company, they’re also an appraisal software provider to a growing network of retail jewelers across the United States. Because they have robust algorithms that can identify price fluctuations in the diamond, gemstone, and metal markets, they're able to leverage their proprietary software for the benefit of their customers. That means with BriteCo, you’ll enjoy the convenience of a complimentary appraisal check, once a year, that will automatically adjust the appraised value of your jewelry, as needed.
I Have My Appraisal, What’s Next?
Already have a solid jewelry appraisal? Fantastic! Now, you’re able to shop for a jewelry insurance quote (check out our jewelry insurance comparison here).
Although there are many ways to insure your jewelry, keep in mind that shiny, new engagement ring isn’t just another article of “stuff”—which is how a homeowner’s policy treats it, which may not be enough in the event of a loss.
We highly recommend going with a specialized jewelry insurance company—one that only insures fine jewelry—like BriteCo.
