How do I get my new diamond engagement ring appraised and insured?
Most people first decide to get their wedding jewelry appraised because they have been told by their insurance agent that an independent jewelry appraisal is a requirement before they can get a jewelry insurance policy. According to the US Department of Justice, nearly $1 billion in jewelry and precious metal was stolen in the US in 2001*; and many people would like to insure their diamond engagement ring or wedding jewelry against this risk. Most of the major US insurance carriers offer some sort of wedding jewelry coverage to address this and, in order to know their risks, and to set the premiums, the jewelry insurance companies require an independent jewelry appraisal or other documentation about the details of your wedding jewelry. A well done independent jewelry appraisal can easily address this and many other concerns associated with owning valuable wedding jewelry or diamond engagement rings. Insuring Diamond Engagement Rings
All jewelry insurance policies have exclusions for 'inherent vice'. This means that if the diamond falls out of your engagement ring because it was poorly set
or otherwise defective, it's not going to be covered by the jewelry insurance company. A statement in the jewelry appraisal from the selling jeweler that your diamond engagement ring is in perfect condition at the time of sale does not always satisfy the jewelry insurance company because of the conflict of interest. After the claim, if the jewelry insurance company's expert can determine by looking at the damaged wedding jewelry that the loss was due to a craftsmanship problem or a defect present in the engagement ring prior to the beginning of the jewelry insurance policy, the jewelry insurance company can disallow the claim.
An accurate and detailed independent jewelry appraisal will provide you and your insurance company with the information necessary to settle a claim fairly and quickly. For insurance purposes, you will want a "replacement cost appraisal", which can differ from other types of jewelry appraisals, such as a "fair market value appraisal" and an "estate appraisal". A replacement cost appraisal is a formal opinion of a jewelry item, offered by a certified gemologist, and it should verify the authenticity, design, quality and monetary value of the item.