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:

Buying jewelry can be risky business as the following examples illustrate.

What’s wrong with the current way of preparing appraisals?
A recent survey of jewelry appraisals submitted to 21 insurance companies in 16 states found that most appraisals lacked information crucial to jewelry insurers… more

Bogus appraisals may be more common than you think.
One necklace selling for $300,000 came with an appraisal valuing it at $575,950. That appraisal was meant for the insurer… more

Aren’t all jewelers trained professionals who know their stuff?
Not nearly. In one investigation, TV reporters found that a number of jewelers in New York’s Diamond District couldn’t even distinguish real diamond from fake… more

Can you recognize a good jewelry appraisal?
Test your wits on some real-world appraisals received by insurers… more

The truth about fancy colored diamonds.
For many, fancy colored diamonds are more highly prized than their clear, colorless cousins. Before you purchase fancy colored diamonds, you really ought to know what they are, where they come from, and how they get that way… more