An insurance replacement appraisal establishes the cost of replacement in case of loss, theft or damage. Important in such an appraisal is an accurate, detailed description as insurance companies insure the jewelry items, not their value. The monetary value is used to determine one’s premium.
A hypothetical appraisal is one in which the item being appraised is no longer available due to loss or destruction. The value is normally based on a previous appraisal, on the verbal description of the item by the owner, or a photograph. This is normally requested when your client has suffered a loss on an item and hasn’t had the item reappraised recently. I recommend reappraisal at least once every 4 years just to keep the value current.
If there is a disagreement between your client and the replacement services department of the insurance company due to size, quality, style or value, we can, as an educated and impartial party work to resolve the differences to help avoid going to court.
This report is used to calculate the difference in value between the item of jewelry or the gemstone as damaged and the item in its original condition before the damage. All damage done to the item is documented and photographed, as well as calculating what the damaged gemstone would be if it were re cut to remove the damage, with the lowered value estimated.