What Does an Insurance Company Look for in a Jewellery Valuation?

A good jewellery valuation is much more than simply putting a price on a piece of jewellery.

The valuation should identify the item as accurately as possible and provide sufficient information to establish what would need to be replaced in the event of loss, theft or damage.

Depending on the jewellery being valued, this can include:

• A detailed description of the item
• The type and fineness of the precious metal
• Metal weight
• Hallmarks and identifying marks
• Diamond details
• Coloured gemstone details
• Setting and construction details
• Condition of the jewellery
• Professional photographs
• An insurance replacement value
• The date of the valuation
• Details of the professional valuer

Let's look at some of these in more detail.

1. A detailed description of the jewellery

The valuation should clearly describe the piece of jewellery being insured.

For example, rather than simply stating “diamond ring”, a professional valuation may describe the style of the ring, the metal, the setting, the number and type of gemstones and other identifying characteristics.

This creates a much clearer record of the jewellery and helps distinguish it from another similar-looking item.

For particularly valuable pieces, details such as the design, setting style and distinctive features can be especially important.

2. The precious metal should be identified

The valuation should identify what the jewellery is made from and, where appropriate, its fineness.

This could include:

• 9ct yellow gold
• 18ct yellow gold
• 18ct white gold
• Platinum
• Sterling silver

Hallmarks can also provide useful information about the metal and should be recorded where present.

The weight of the jewellery may also be included, particularly for valuable pieces where the precious metal forms a significant part of the item's value.

3. Diamond details are important

For diamond jewellery, the diamond characteristics can have a significant impact on value.

A professional valuation should provide relevant information about the diamonds, which may include:

• Carat weight
• Colour
• Clarity
• Cut
• Shape
• Number of diamonds
• Setting arrangement

Where a diamond has a recognised independent grading report or certificate, this can also be relevant to the valuation.

For example, simply describing an item as a “diamond engagement ring” does not provide enough information to accurately identify the diamond or establish its replacement value.

Two rings can look very similar but have significantly different values depending on the quality and characteristics of the diamonds.

4. Coloured gemstones should also be documented

If your jewellery contains coloured gemstones such as sapphires, rubies, emeralds or other precious or semi-precious stones, relevant information should be recorded as part of the valuation.

Depending on the stone, this may include:

• Type of gemstone
• Carat weight
• Colour
• Measurements
• Shape and cut
• Treatment where relevant
• Origin where it can be established and is material to value

Again, the aim is to create a detailed record of the actual jewellery being insured.

5. The setting and construction of the piece

The way a piece of jewellery is made can also contribute to its value.

A valuation may therefore record details such as the type of setting, number of claws, stone arrangement, design features and construction.

This can be particularly useful when valuing bespoke jewellery, antique jewellery or unusual designs that may be difficult to replace with an off-the-shelf equivalent.

6. The condition of the jewellery

The condition of the item should be considered as part of the valuation.

The valuer may record whether the jewellery is in good condition or whether there are signs of wear, damage, repairs, alterations or other factors that could be relevant.

This is particularly important with older or regularly worn jewellery.

A professional valuation provides a record of the condition at the time the valuation was carried out.

7. Photographs can provide valuable supporting evidence

Clear photographs are an important part of documenting valuable jewellery.

Photographs can show the overall appearance of the item as well as distinctive features, gemstone arrangements, hallmarks and other characteristics.

For insurance purposes, photographs can help provide a visual record of exactly what was valued.

This can be especially valuable for unique, bespoke or sentimental pieces that may be difficult to identify from a written description alone.

8. The insurance replacement value

One of the most important parts of an insurance valuation is the replacement value.

An insurance valuation is not simply a statement of what you originally paid for your jewellery.

The purpose is generally to provide an estimate of what it would cost to replace the item with a comparable piece at the date of valuation, subject to the terms and conditions of the relevant insurance policy.

This is why the value shown on an old receipt may not be an appropriate figure for your current insurance cover.

Jewellery prices can change over time due to factors including precious metal prices, diamond and gemstone prices, manufacturing costs and wider market conditions.

Is an insurance valuation the same as the purchase price?

No.

The price you originally paid for a piece of jewellery and its current insurance replacement value are two different things.

You may have purchased an engagement ring several years ago for a particular price. If the cost of comparable materials, gemstones and craftsmanship has increased since then, the cost of replacing that ring today may be considerably different.

Equally, the retail price of a particular item can change for many reasons.

For insurance purposes, what matters is having an appropriate valuation that reflects the purpose of the valuation and the relevant market at the date it is carried out.

What happens if a jewellery valuation doesn't contain enough information?

A vague valuation may make it more difficult to establish exactly what jewellery was insured.

For example, a valuation stating only:

“Gold diamond ring – €5,000”

provides very little information about the actual item.

A detailed professional valuation should provide a much clearer record of the jewellery, including its metal, gemstones, characteristics, design, condition and replacement value.

This documentation can be particularly important if the jewellery is subsequently lost, stolen or damaged.

What if I have already lost my jewellery?

If you have lost jewellery and do not have an existing valuation, there may still be options available depending on the circumstances and your insurance policy.

A post-loss jewellery valuation can sometimes be carried out using available evidence such as photographs, previous documentation, receipts, certificates and detailed information about the item.

This is why keeping photographs, receipts, diamond certificates and previous valuations in a safe place is always advisable.

If you have already experienced a loss, you should also contact your insurance company as soon as possible and follow the requirements of your individual policy.

How often should jewellery be valued for insurance?

There is no single valuation interval that applies to every jewellery owner or every insurance policy.

Jewellery values can change over time, so it is sensible to review your insurance cover periodically and check what your insurer requires.

This can be particularly important for higher-value jewellery, engagement rings, diamond jewellery and pieces that were valued several years ago.

If you are unsure whether your existing valuation is still suitable, having it reviewed by a professional valuer can help you establish whether an updated valuation is appropriate.

Why choose a professional jewellery valuer?

A jewellery valuation should be carried out by someone with appropriate knowledge and experience of jewellery, gemstones, precious metals and the relevant market.

A professional valuer can assess the individual characteristics of your jewellery and provide a detailed written valuation for its intended purpose.

For valuable jewellery, an accurate and properly documented valuation gives you a much stronger record of what you own than relying solely on a receipt or a photograph.

Protect your jewellery with a professional insurance valuation

Your jewellery may have significant financial or sentimental value, but without an accurate valuation, it can be difficult to establish exactly what should be covered by your insurance.

A professional jewellery valuation for insurance purposes provides a detailed record of the item and an appropriate replacement value at the date of valuation.

At Diamond Valuations Ireland, we provide professional online jewellery valuations for clients throughout Ireland, making it possible to have valuable jewellery assessed without needing to visit a traditional valuation office.

Whether you need an insurance valuation for an engagement ring, diamond jewellery, gold jewellery, a family heirloom or another valuable piece, having your jewellery professionally documented can give you greater confidence that you have the information you need should you ever need to make a claim.

Ready to have your jewellery valued?

Visit Diamond Valuations Ireland to arrange your professional jewellery insurance valuation today.