Engagement Rings: Opt for Appraisal and Insurance
Engagement Rings truly symbolizes your love and commitment to your special someone. Engagement rings are made of various metals and they come studded with diamonds and other gemstones. An engagement ring is usually a very large investment for most of the couples. Therefore, it is recommended that your precious ring be appraised and insured. The appraisal can be done by a competent and qualified appraiser who works in the personal property field. This appraiser does not have to work independently of a jewelry store. They can be employed by a jewelry store and still perform appraisals for customers of the store and even non customers. However, they must deliver an appraisal certificate that represents the true market value of the jewelry and not necessarily the price paid in the store. This helps the customer cause.
Why there is need for jewelry insurance? It has been observed that jewelry insurance is done for Retail Replacement Value. This means that the insurance company is obligated to replace the item in like kind and quality. This does not mean that the insurance company will write you a check for the value stated on the appraisal. If you have a jewelry loss and choose to cash out, the insurance company will usually only pay you an amount equal to what they can replace the lost item for through their sources.
It has also been seen that most insurance companies do not require that an appraisal be done from an independent appraiser although this is thought to be true by some people in the industry. Assuming that you are insuring a diamond engagement ring, the important factor for the insurance company is that it has to be done accurately and completely described with the current market value. The appraisal should contain a reference to any Diamond Grading Report that might accompany the diamond, along with a complete description of the mounting into which the diamond is set. The insurance company will decide if they will insure the ring based on the description in the appraisal or not. Many insurance companies are now recommending that an appraisal be performed by a Graduate Gemologist with additional training in appraisal theory. This makes valuation better.
Most of the homeowner's policies offer a jewelry coverage policy to suit your needs. You should check with your agent and ask what their requirements are. You should find out what they cover, and equally important, what they don't cover. If you rent your home or apartment, it is possible to purchase a renter's policy which can also include jewelry coverage. It is not necessary to have a homeowner's policy. If you rent a home you can still get the insurance. And this can save you from many worries.
Jewelry is indeed precious. And if the jewelry mainly consists of diamond jewelry, then it’s advisable to get an appraisal done and then opt for insurance.
Why there is need for jewelry insurance? It has been observed that jewelry insurance is done for Retail Replacement Value. This means that the insurance company is obligated to replace the item in like kind and quality. This does not mean that the insurance company will write you a check for the value stated on the appraisal. If you have a jewelry loss and choose to cash out, the insurance company will usually only pay you an amount equal to what they can replace the lost item for through their sources.
It has also been seen that most insurance companies do not require that an appraisal be done from an independent appraiser although this is thought to be true by some people in the industry. Assuming that you are insuring a diamond engagement ring, the important factor for the insurance company is that it has to be done accurately and completely described with the current market value. The appraisal should contain a reference to any Diamond Grading Report that might accompany the diamond, along with a complete description of the mounting into which the diamond is set. The insurance company will decide if they will insure the ring based on the description in the appraisal or not. Many insurance companies are now recommending that an appraisal be performed by a Graduate Gemologist with additional training in appraisal theory. This makes valuation better.
Most of the homeowner's policies offer a jewelry coverage policy to suit your needs. You should check with your agent and ask what their requirements are. You should find out what they cover, and equally important, what they don't cover. If you rent your home or apartment, it is possible to purchase a renter's policy which can also include jewelry coverage. It is not necessary to have a homeowner's policy. If you rent a home you can still get the insurance. And this can save you from many worries.
Jewelry is indeed precious. And if the jewelry mainly consists of diamond jewelry, then it’s advisable to get an appraisal done and then opt for insurance.
posted by Roger Glass @ 4:33 AM
