FREQUENTLY ASKED QUESTIONS

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1. What is the importance of Jewelry Insurance?

While 2011 was a banner year for the jewelry industry, 2012 was more like a roller coaster ride. With the fear of the fiscal cliff, election year jitters, rising costs of precious metals, topped off with Hurricane Sandy at the end of the year, jewelry sales were not as robust as the industry would have liked. U.S. jewelry and watch sales were up only 5.9%, ending at $71.3 billion compared to the previous year at 10% growth in 2011. Yet the cost to create wearable art (jewelry) was from flat.

What does this all mean to you?

What this means, in a nutshell, is that it will cost you more to purchase new jewelry or replace lost, stolen or damaged items. A current jewelry appraisal and appropriate insurance protection are NOW more IMPORTANT THAN EVER! 

2.What is an  Appraisal?

An appraisal is a written statement, independently, impartially and objectively prepared by a qualified professional and independent jewelry appraiser, setting forth an opinion of the defined value of an adequately described piece of jewelry as of a specific date, supported by the presentation and analysis of relative jewelry market information.

3.Why choose an "independent" Appraiser?

Independent Appraisal firms are the recognized authority on the appraisal of Gems and Jewelry. They are professional appraisers and are not engaged in the business of selling gems and jewelry. Thus, they represent an unbiased valuation of the jewelry they appraise. Additionally, independent appraisers are highly qualified and can provide not only expert insurance appraisals but appraisals for the more challenging assignments.

Many independent appraisers are titleholders in one or more of the major appraisal organizations such as Gemological Institute of America (GIA), Diamond Council of America (DCA), American Gem Society, National Association of Appraisers. All of these organizations require extensive experience, valuation and gemological testing and successful completion of practical appraisal performance examinations to earn advanced titles.

4.What should I look for in choosing an Appraiser?

Here are some basic requirements for selecting the right independent appraiser for you.

• Formal gemological education from an accredited Gemological Association.
  
• Training in the principles of valuation
  
• Training in evaluating in various manufacturing methods
  
• Experience in the buying and selling of jewelry
  
• Knowledge of current wholesale and retail pricing on gemstones, diamonds, watches and precious metals.
  
• Knowledge of actual sale prices with access of verifiable data.​

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5. Is an appraisal a legal document?

An appraisal is not a legal document. But, appraisals are often the core negotiating tool in a range of legal proceedings and court cases. A well-supported written appraisal is critical for success in estate, divorce, bankruptcy and insurance settlement cases.

Individuals named as "Executors" must take particular care in choosing the right appraiser as both the individual and the appraiser could be found individually responsible for any significant misstatements of value.

6. Is an appraisal a guarantee?

An appraisal is not a guarantee. By definition, it is a written statement which is independently, impartially and objectively prepared by a qualified professional independent jewelry appraiser, setting forth an OPINION of the defined value of an adequately described piece(s) of jewelry as of a specific date. This is also supported by the presentation and analysis of relative jewelry market information.

7. When should I have my jewelry appraised?

We recommend you should get your for the following reasons:

• ​To obtain insurance coverage on items worth more than $500.00
  
• When selling your jewelry or using it as collateral
  
• When settling an estate or for fair distributions of assets
  
• If you claim a casualty loss for your insurance company or the IRS
• Dividing property in a divorce
  
• When claiming a tax deduction for a charitable contribution
  
• When settling a dispute between you and a retailer
  
• Updates. Most Home Owners Insurance companies require you to update all your current jewelry appraisals between 3-5 years as the market value of diamonds and precious metals increase at least            3-5% yearly. NOTE:Gold Prices are up  100% since 2009.

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8. How long does an appraisal take?

It depends on the type of appraisal and the number of items being appraised. New items with supporting documents from reputable sources generally take less time. Antique or vintage items take a little longer to ascertain current market value.

9. What if I change Home Owners Insurance companies?

​If you decide to change Home Owners Insurance companies for any reason, all your personal jewelry MUST be appraised no longer than TWO (2) years prior from the date you sign on with your new insurance company.

10. Difference between Lab Certificates & Jewelry Appraisals

Jewelry Appraisals and Lab Certificates are two very important reports that provide details about your gemstones and fine jewelry, but they do not serve the same purpose. Let's talk about the differences,.

LAB CERTIFICATES AND GRADING REPORTS

A lab certificate or grading report documents information about an unmounted gemstone.Grading reports differ for diamonds and colored stones, but documentation for each type includes specifics about carat weight and dimensions, color and clarity grades, and items relating to the gemstone's cut and shape. Think of a grading report as kind of a road-map of the gemstone - the map will not change unless the gem undergoes alterations or an error was made during evaluation.

JEWELRY APPRAISALS

A jewelry appraisal can be ordered for any item of jewelry, no matter what its composition. Gemstones can either be mounted or loose - the jewelry being appraised needn't contain gemstones. 

Jewelry appraisals put a dollar value on the jewelry being appraised, and are often performed for insurance purposes. An appraisal might also be necessary to settle an estate or to divide property during divorce. Or you might just want to verify an item's true market value before you commit to a purchase.

Market values change, so most professionals recommend you have your fine jewelry appraised every two years. Ask your insurance agent for a recommendation. If you use the same appraiser, it is often possible to receive an update, which is usually less costly than a brand new appraisal.

DON'T ASSUME THAT LABS AND JEWELRY STORE APPRAISERS ARE WRITTEN BY QUALIFIED OR UNBIASED PEOPLE. IT IS BEST TO USE A PROFESSIONAL WHOSE SERVICES ARE NOT CONNECTED TO THE FIRM THAT IS SELLING THE JEWELRY OR GEMSTONE.

CALL OR EMAIL US TODAY FOR YOUR APPOINTMENT!

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www.info@HnAappraisals.com

469-262-8785