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 to replace the item through the market defined in the engagement. Insurance work commonly uses new, second-hand, or another stated replacement basis depending on the item and policy.
• Resale value — what the customer could receive through a stated secondary-market route. Auction, dealer, private-sale, liquidation, probate, and other purposes may require different bases.
• Purchase price — what they paid, possibly years ago. It can be useful evidence, but it is not automatically the current replacement conclusion.

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 clear valuation report commonly records

Requirements vary, but a reviewer needs enough information to understand the item, assignment, evidence, limitations, and conclusion. GIA’s appraisal guidance includes the purpose, a detailed description, value, limiting conditions, signature, and the appraiser’s qualifications among the core report information. A working checklist should therefore cover:

• 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. Confirm any extra wording, credentials, image, or schedule requirements with the insurer and the professional rules that apply to the engagement.

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 an opinion at a stated date. Market conditions, replacement routes, condition, and policy requirements can change. There is no universal interval, so a responsible review policy combines the valuer’s recommendation with the insurer’s current requirements.

• Review when the valuer or insurer recommends it for that item and policy
• Review earlier after a repair, alteration, damage, or new laboratory evidence
• Review when the relevant replacement market or policy terms materially change

GIA notes that many appraisers suggest two to three years, but also tells customers to ask the appraiser and insurer. The National Association of Jewellers likewise advises regular review without presenting one interval as suitable for every item.

Produce the certificate properly, and quickly

Jewel Value provides a guided structure for metal, stones, grading, value basis, and supporting notes. It supplies metal-price references, records supported laboratory report details, and produces a branded PDF that can be shared through a controlled customer link. The valuer remains responsible for the evidence, method, conclusion, and applicable professional requirements.