Why Insurance Standards
Why are jewelry appraisal standards important? Put simply, jewelry appraisal standards protect everyone involved in the jewelry insurance process.
- The insurance company can more accurately underwrite the risk because it has complete and better quality information with which to work.
- Insurance adjusters can settle claims more easily and avoid overpayments resulting from lack of information or fraud.
- Insurance agents can more confidently prepare submissions because they will know what kind of information is required to accurately insure the jewelry.
- Policyholders will understand how the appraisal is used by insurers and recognize that an accurate and detailed appraisal is to their advantage.
To properly insure jewelry, agents, underwriters, and carriers must rely on various pieces of information about the item being insured. That information, which originates with various jewelry industry sources, needs to be accurate, complete, and reliable. If the information about the item sold is incomplete, inaccurate, questionable, or unreliable, insurers cannot properly insure the item with confidence.
That puts both the insurer and the insurance customer on tenuous ground. Should the insured need to file a claim against the item’s loss or damage, the accuracy of the settlement amount may also be questionable and could lead to a loss of customer satisfaction and good will. Adherence to appraisal standards ensures that every party to the insurance process is working with accurate and reliable information, enabling them to do their job properly.
Ultimately, jewelry standards, including the tools and training associated with them, enable the insurance industry to save money and improve customer satisfaction through efficient and effective jewelry insurance processing solutions.
The definition of a jewelry appraisal for insurance purposes is. . . a written, detailed description of an item of jewelry adequately describing all characteristics, including weights, grades and measurements, usual to the item and its component parts, sufficient to determine the actual cash value (replacement cost less depreciation) at time of loss.
Why Standards? 4 Case Studies: