Insurance Replacement
Appraisal
The
most important reason for having your jewerly appraised is for
insurance replacement value in case of loss. An
apprasial provides you with protection for proper
reimbursement. If you lose your jewelry, you have document
describing your item in exact and extensive detail- stone
measurements, clarity, and color - quality and value of the
item. With this information, you can get the original item
replaced with a similar one.
Diamonds and gemstones of the same size can range
drastically in
value according to their specific qualities and
characteristics. Therefore, you are protected and assured that
the replacement is on par with the lost item.
Most insurance companies request an appraisal for items
above a certain value, for their homeowner’s policy. The
appraisal validates their existence and condition, and
determines proper coverage and premiums for the policy.
Depending on how the policy is written, these appraisals are
then consulted at the time of loss, theft or damage, to assist
in replacement. The jewelry replacement value reflects the
price that the client would most likely pay for one of the
same or similar description on the date of the
appraisal.
Estate Appraisal (Fair Market
Value)
An estate appraisal value is
lower than the appraisal value for insurance purposes because
it does not include costs for labor, fabrication, designer
names, or today's marketing costs.. Fair Market value is used for estate-evaluation
purposes, and is an assessment based on what a willing buyer
and seller would agree to without a forced sale. Appraisal
criteria for estate have been legislated to include specific
information and data, but do not include the factor that an
insurance replacement appraisal does, and so this usually a
lower value. The following is the U.S. Treasury definition of
FAIR MARKET
VALUE-
“The fair market value is the price at which the
property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or
to sell and both having reasonable knowledge of the relevant
facts. The fair market value of a particular item of property
includible in the decedent’s gross estate is not to be
determined by a forced sale price. Nor is the fair market
value of an item property to be determined by the sale price
of the item in a market other than that in which such item is
most commonly sold to the public, taking into account the
location of the item wherever appropriate. Thus, in the case
of an item of property includible in the decedent’s gross
estate, which is generally obtained by the public in the
retail market, the fair market value of such an item would be
sold at retail. (Treasury Regulation
20.2031-1(b))”
(A
Fair Market Value appraisal is appropriate in cases such as
dissolution of a marriage)
Verify Internet Jewelry
Purchase
In
some cases it is simply that you want to know. For a small
fee, find out….
-Is
it real?
-Should I have it insured?
-This was bought on the Internet* (eBay, Craig’s List,
Blue Nile….)
-It
may be one piece, several, or a jewelry chest of
items.
*
I can offer peace of mind… when buying jewelry on the
Internet, you can save you money, but I can verify what you
bought is what you received.
