How to value jewellery for insurance: a jeweller’s guide

Replacement value ≠ resale value ≠ what they paid

Three different numbers get confused constantly. Be explicit about which one an insurance valuation uses.

• Replacement value — what it would cost today to replace the item with one of equivalent specification, at retail. This is the insurance number, and usually the highest of the three.
• Resale value — what the customer could sell it for. Almost always lower; relevant for probate or resale, not insurance.
• Purchase price — what they paid, possibly years ago. Irrelevant to a current insurance valuation, especially after metal-price movement.

Spell this out to the customer up front. It prevents the “but I only paid X” conversation and positions you as the expert.

What a valid insurance valuation certificate must contain

An insurer — and, at claim time, a loss adjuster — needs enough detail to replace the item precisely. A defensible certificate includes:

• Full item description — type, metal and fineness, overall weight
• Stone details — for each significant stone: type, cut, estimated carat weight, colour and clarity grade, measurements, and setting
• Any lab report references (GIA, IGI, HRD) where they exist
• Condition and notable features (hallmarks, maker’s marks, engraving)
• Replacement value, clearly labelled as such
• Valuation date — prices move, so a valuation is a snapshot in time
• Valuer’s details and signature
• A clear statement of the basis of valuation (retail replacement for insurance)

A photograph of the item alongside the description is best practice and increasingly expected.

Grading: how precise do you need to be?

For insurance replacement you need enough grading accuracy to specify a replacement — not necessarily a full gemmological workup on every stone. Where a stone already has a GIA/IGI/HRD report, reference it directly; it does the heavy lifting and adds credibility. For un-certificated stones, give your professional estimated grades and note that they are visual estimates. Never present an estimate as a lab-certified grade.

When should customers re-value?

A valuation is a snapshot, and jewellery is exposed to two moving targets: metal prices and retail prices. A sensible cadence:

• Every 2–3 years for most pieces
• At each policy renewal for significant items
• After any metal-price surge, which can push replacement value up in months

Offering a periodic re-valuation service is a genuine recurring touchpoint — and a reason for customers to come back to you.

Produce the certificate properly, and quickly

The information above is non-negotiable; the time it takes is where most jewellers bleed. Jewel Value walks you through metal, stones, grading and replacement value, pulls live metal rates, supports GIA/IGI/HRD references, and produces a branded PDF certificate your customer can open via a secure link — all inside your Shopify admin.