Jewellery Valuation for Accurate Insurance Settlements

When it comes to insuring valuable jewellery, ensuring that each piece is accurately valued is crucial to protecting yourself against unexpected loss or damage. A well-documented, professional jewellery valuation can make all the difference when filing an insurance claim.

Why is Jewellery Valuation Essential for Insurance?

Jewellery is a significant asset, and its value can fluctuate due to market conditions, changes in precious metal prices, and trends in gemstone demand. Without an accurate and up-to-date jewellery valuation, you may find that your insurance payout falls short in the event of a claim. This is why regular jewellery valuations are essential, particularly for high-value items such as diamonds, gemstones, and luxury watches.

The importance of accurate valuation and authentication has been at the heart of several high-profile legal cases in the luxury industry. One prominent example is Chanel v. The RealReal. In this case, Chanel sued The RealReal for allegedly selling counterfeit Chanel products, despite The RealReal’s claim that it had an in-house authentication process. Chanel argued that only the brand itself could authenticate its products, highlighting the risks of inaccurate valuation and authentication in the luxury resale market. This ongoing legal battle underscores the need for professional expertise in valuing and verifying high-end assets, including jewellery, to avoid disputes and financial losses.

Another notable case is Tiffany & Co. v. eBay, where Tiffany sued eBay, claiming that the platform allowed the sale of counterfeit Tiffany goods. The court found that eBay, as a platform, was not responsible for counterfeit items sold by individual vendors. However, unlike eBay, The RealReal actively curates and approves its merchandise, bearing the risk of liability for items sold on its platform. This case demonstrates the complexities surrounding the valuation and sale of luxury goods in secondhand markets and the critical role of accurate appraisal.

What Does an Insurance Valuation Involve?

Insurance valuations are thorough and independent. Each piece of jewellery is assessed in detail, taking into account factors such as:

• Carat weight, cut, and clarity of diamonds and gemstones

• Precious metal content, including gold, platinum, and silver

• Provenance and rarity of antique or unique pieces

• Current market trends for high-net-worth jewellery and luxury watches

The resulting report is recognised by insurance companies and includes high-quality digital images, an itemised description, and a valuation figure based on current market conditions. This documentation ensures a smooth claims process should the need arise.

How Often Should Jewellery Be Re-Valued?

It is recommended to have your jewellery re-valued every 2-3 years. The value of precious metals and gemstones can increase, and regular re-valuations will ensure your insurance cover remains accurate. For particularly valuable collections, more frequent valuations may be advisable to stay in line with market fluctuations.

Peace of Mind with Independent Valuations

Whether you’re insuring an engagement ring, a family heirloom, or a collection of luxury watches, having your jewellery accurately assessed ensures your most valuable assets are fully protected.