What is "Worth" Appraising?

Deciding which items are “worth” appraising is a matter of personal choice, combined with tolerance for risk and the specifics of your insurance policy.  Typically, one wants to insure items considered to have a high intrinsic value (the low threshold of this number will be different for everyone, and could range anywhere from $500 to over $20,000 per item) and any items you would definitely replace in case of a loss.

The first step is to understand your particular policy and how a replacement would work.  Insurance companies rarely write a check when there is a loss.  Instead, they see that the item is replaced with a comparable version.  This might be through a jeweler of your choice, through the secondary market if it is a vintage or antique item, or even through the insurance company’s own jewelry manufacturing facility.

There is usually a deductible on any policy, which typically ranges from $1,000 to $3,000.  Often, clients choose not to appraise anything with a value below their deductible.  However, this may only be a good strategy if you’re mostly concerned about the loss of a single item, perhaps while traveling.  If you were to suffer a robbery in which your entire jewelry box was stolen, and had not insured any items valued below that deductible number, none of those items would be covered. 

There are “umbrella” policies, which cover any losses under a certain ceiling (often around $10,000, but it varies), but this may not be able to cover the totality of a collection. 

Keep in mind that insurance companies often require individual riders for items over a certain value (frequently about $5,000).  Insurance premiums are typically between one and three percent of the appraised value.

Please check with your agent to be sure you understand your specific policy and their replacement protocols.  Only you can decide what is “worth” appraising.

HOWEVER …

It can also be valuable to have an appraisal even if you don’t insure all of the items, as the report can act as an inventory.  In some cases, in the event of a loss of an uninsured item, you may be able to take a tax deduction if the item is property documented.