Jewellery Valuations for Insurance: What They Are and When You Need One

Most people only look at their jewellery valuation when they need it: after a ring is lost or a claim is lodged. By then it is too late to fix a document that is out of date or too vague. Here is what an insurance valuation is, what a good one contains, and when it is worth getting one done.

What an insurance valuation is

An insurance valuation is a written document that describes a piece of jewellery and states what it would cost to replace it with one of the same kind and quality. It is a replacement figure, not a resale figure. It is not what a buyer would pay you for the piece second-hand, and the two numbers are often very different.

The description matters as much as the figure. A good valuation records the metal and its purity, the weight where it can be measured, and each stone: its type, shape, measurements and quality characteristics. It should be detailed enough that a jeweller could remake the piece from the paperwork alone. If a ring is lost, that description is what lets an insurer replace like with like, rather than settling on something cheaper.

Insurance, estate or resale: why the purpose matters

Valuations are written for a purpose, and the purpose changes the figure.

• Insurance: replacement cost, meaning what it would cost to buy or make the same piece new today.
• Estate and probate: an independent figure that executors and beneficiaries can work from when jewellery is divided.
• Resale or fair market: what the piece is realistically worth second-hand. Worth knowing before you sell anything.

Say what the document is for when you book, so you get the right figure.

When you need one

• When you buy or are given something significant. An engagement ring, a pair of wedding bands, a strand of pearls. Many policies need a valuation before a single valuable item is fully covered, so check yours.
• After a custom commission or a remodel. A one-off piece has no catalogue price for an insurer to fall back on. If you have had heirloom jewellery remodelled, the old valuation describes a piece that no longer exists. Our article on remodelling heirloom jewellery explains what changes in that process.
• When you inherit jewellery. Older pieces often arrive with no paperwork and nobody quite sure what they are. The assessment establishes the metal, the stones and the period before any figure is put to it.
• When your valuation is several years old. Gold, platinum and diamond prices move. A replacement figure written years ago may be well below today's cost, and if the figure is low, the settlement is low.
• After a significant repair or alteration. A replaced stone, a new shank or a changed setting alters the piece, so the description should change too.

How often to revalue

There is no single rule. Many insurers specify how current a valuation must be, so start by checking your policy wording or asking your insurer. As a habit, revalue when metal and stone prices have moved, after any remodelling or major repair, and whenever your insurer asks for an updated document.

Why an independent, registered valuer

A figure written by the shop that sold you the piece carries less weight with an insurer than one written by someone with no stake in the sale. In Australia, the National Council of Jewellery Valuers (NCJV) registers valuers who work to a recognised standard, and registration is the credential insurers and executors generally look for.

At NY2K, valuations are carried out by a contracted NCJV-registered valuer who is independent of the business. She attends our Cotton Tree studio on scheduled days, so valuations are by appointment rather than while you wait. Your jewellery is assessed here at the studio.

What the bench adds

A valuer looks at value. A goldsmith also looks at condition. Paul New has spent more than 40 years making, setting and repairing jewellery, so pieces brought in for valuation can be checked properly at the same time: worn claws, thin shanks, earlier repairs, or a stone that has been replaced at some point. Those things affect both what a piece is worth and whether it is safe to keep wearing. If anything needs attention, we raise it with you separately, and nothing goes ahead without your say.

What to bring

• The jewellery itself.
• Any paperwork you already have: old valuations, diamond grading reports and receipts. All of it helps.
• Your insurer's requirements for the document, if they have given you any.

We value jewellery bought anywhere, not only from NY2K. Most pieces brought in for valuation were bought elsewhere, including inherited and antique jewellery of unknown origin.

A valuation is not a certificate

A grading report from a gem laboratory describes a stone's characteristics. It does not put a value on your finished piece. A valuation describes the whole piece and states a figure for a stated purpose. Keep both together with your policy.

Booking a valuation in Cotton Tree

Because the valuer attends on arranged days, the simplest way to book is to call the studio on 07 5443 1955, and we will book you into the next available session. Cost depends on the number of pieces and their complexity, so we confirm it when you book rather than quoting blind. There is more detail on our jewellery valuations page. If you would also like to talk through a repair, remodel or commission, you can book a time online.

NY2K Jewellers, Rovera Plaza, Shop 5, 23 Cotton Tree Parade, Cotton Tree. Open Monday to Friday, 9:30am–4:00pm, and Saturdays by appointment.