An appraisal is an informed opinion as the authenticity, quality, design and value of a jewelry item. The opinion is backed by training, experience and equipment.

This appraisal is the type you usually need to properly insure your jewelry against loss or damage. The appraisal price in this instance will give you the approximate cost of replacing the jewelry item or recreating it as closely as possible. Therefore, the appraisal should take into consideration today's retail prices, cost for labor, material, creative design and the precious stone market.

These estimated replacement costs are based only on estimates of the quality of the gems ( unless specifically stated that the gems were removed and graded ). Even if removed, slight differences may occur between grades given by our accredited gem laboratory and those given by other laboratories, because gem grading is subjective. If outside laboratory grades are given, they will be identified by laboratory report and number. We assume no liability with respect to any action which may be taken on the bases of the appraisal.
This requires an appraisal of the cash value of an item based on what a willing buyer and a willing seller would agree to without a forced sale. An estate evaluation often consists of a number of pieces of jewelry, a variety of types, some in fair condition, while others may be badly worn. An estate appraisal is based on the premise that the collection is to be liquidated Since it does not consider selling costs nor current prices for labor or creative design, this type of appraisal is normally lower than appraisals for replacement value.
A Homeowner's insurance policy and Apartment Tenants policies commonly include coverage for personal property and the value of jewelry is included in said limit of insurance. All such policies restrict jewelry coverage for theft, burglary or robbery, however, to $500 in the aggregate ( Some few companies provide $1000 ). Further, such insurance is usually for perils of fire, wind, building collapse, theft, vandalism, etc. and not for "all risks" including loss of the property or loss of a single stone from the item. To obtain complete coverage to the full value of item(s), and appraisal for each piece will be required and the coverage can be scheduled on your policy, with a specific description of the item and an amount of insurance on each item. If you care to have proper value coverage, a detailed professional appraisal is paramount.
When the loss of an appraised jewelry item occurs, the importance of a properly prepared, detailed appraisal becomes very apparent. The jeweler from whom the item was purchased would be the best source for accurate, quality replacement, for obvious reasons, if replacement by the original jeweler is not possible, the next best choice would be the jeweler who does the appraisal. In any case, the preparer of this appraisal should be consulted for verification of the quality and value of the proposed replacement.

At the time of loss, be sure your facts are substantiated and the police are immediately notified. Provide them with the details from your appraisal, which may assist them in a speedy closing of the investigation through prompt identification of your pieces. After filing the police report, notify your insurance agent.

Most insurance policies contain a clause which allows the company to supply you with a replacement rather than have the appraiser replace the item. If so, use your appraisal to verify that the quality of the replacement is similar to the item loss.
The development of a value for a fine piece of jewelry that already exists involves a judgment on manufacturing techniques, identification and quality of gemstones. This is , naturally, done after the fact, inasmuch as an examination of gemstones is made while mounted This will tend to mask some important factors that are apparent only before assembly or manufacturing. Gemstone quality variations are very, subtle, but greatly change the value. In cases where diamonds or gemstones are appraised while mounted, these minute variations cannot be judged as accurately; therefore, the tolerance of variation can be quite broad.
In case a stone was graded while still mounted in the jewelry, it must be noted that grading is determined by only limited testing, measurements and observations.

Its approximate weight was determined by Volumetric Calculations rather than an exact weight by scale. The color grade determination was made by comparative and limited observation rather than with more accurate color grading techniques. The clarity grade was made under conditions that could obscure possible imperfections that otherwise would be seen if the stone was not mounted.

Therefore, the overall grade of the stone is limited to the extent that the mounting prevents weighing and prevents accurate color and clarity grading.