Most wedding ring discussion centers around the engagement.
How are you going to propose? How much money should you spend on an engagement ring? Where should you buy it?
However, after the proposal and the wedding, you’re likely going to want to protect the value of that ring for decades to come. After your house and your vehicle, it may be the most expensive thing you own, or at least one of them.
So what’s the best way to get your wedding ring appraised? And how often should you get your ring appraised for insurance?
That’s what a listener of theClark Howard Podcastrecently asked.
Who Should I Get To Appraise My Wedding Ring for Insurance Purposes?
What business should I contact to appraise my wife’s wedding ring?
That’s what a Clark listener asked on the June 6 podcast episode.
Asked David in Ohio: “I’ve been married for 20 years. I have not had my wife’s wedding ring appraised for insurance since before we were married. All of your recent discussion of lab-grown diamonds has made me wonder how the value has changed, and whether it is appropriately insured under my homeowners policy.
“How often do you suggest getting jewelry appraised for insurance? And what type of business should I contact (or avoid) to give an accurate, objective appraisal?”
Keep in mind that you aren’t typically getting an appraisal just for entertainment. You’re making sure that if your ring gets lost, stolen or damaged, you’re able to replace the full value through your insurance company. So you’ll need to follow their rules.
“Generally, when we’re talking about the diamond itself, you would go to a graduate gemologist. That is a level of expert who would map the stone and be able to issue an appraisal to you,” Clark says.
“Now, you need to find out from your homeowner’s insurer what their procedure is for creating an acceptable appraisal and value. But normally a homeowner’s insurer would tell you that a graduate gemologist would be the standard they would accept.”
A Word About Your Insurance Policy
Insuring a wedding ring isn’t like ordering at McDonald’s, where a No. 1 combo is a Big Mac whether you’re in Seattle, Washington, or Atlanta, Georgia.
You may have to purchase a special rider, or supplemental policy, to attach to your homeowners insurance policy. What’s actually covered or excluded in case something happens to your ring will vary by company as well.
These policies often cost between 0.5% and 2% of the value of your ring. So if your ring is worth $10,000, a policy that costs 1% would be $100 per year.
It’s important that you understand your policy, what it costs and what it covers before getting preoccupied with the appraisal itself.
How Often Should You Appraise a Wedding Ring for Insurance?
Clark didn’t have much to say regarding the frequency at which you should appraise your wedding ring for insurance.
Jewelers recommend appraisals every two to three years, citing the likelihood that the fair market value or gemstones and precious metals will fluctuate. Of course, they have a vested interest in getting you to appraise your ring more often.
The cost to get your wedding ring appraised by a jeweler is about $100, although it can vary considerably. That’s a good number for our purposes here, though. Jewelers may also try to sell you additional things such as a ring cleaning (although sometimes those are free).
The value of your wedding ring probably should influence how often you get it appraised.
If your ring is worth $1,000 and you appraise it every two years, you’ll end up paying the full value of the ring in appraisal fees in 20 years ($100 x 10). Short-term fluctuations in price are likely to be negligible. Say the ring value increases 10% in a year. We’re talking about $100 — equal to the cost of an appraisal.
Let’s instead consider a ring worth $15,000. A 10% price change for this ring amounts to $1,500.
Make sure that your insurance company doesn’t require your most recent ring appraisal within a certain timeframe to fully insure it. (You don’t want to wait 10 years, for example, if your policy requires an appraisal every five years to fully insure it.)
Otherwise, I personally wouldn’t look at appraising a wedding ring more often than every five years.
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Final Thoughts
Your highest priority when appraising your wedding ring is to comply with your insurance company’s requirements.
Make sure that you understand your policy, including the qualifications your insurer requires of the appraiser. Generally, a graduate gemologist should be the answer.
Once you’re within the insurance requirements, it’s a math equation. You can figure out how often you want to get your wedding ring appraised based on the cost of each appraisal, the value of the ring and the size of the price swings.
The resale value is affected by the current economic value of the item and other market conditions. Most experts in the industry recommend having jewelry appraised every two to three years, and the longer you wait to do so, the more the cost of replacing the jewelry will increase.
Jewelry fluctuates in value! The older the appraisal the less accurate the value it lists. This is almost always less than what you should be insuring your jewelry for. Insurance companies and appraisers recommend updating jewelry appraisals every two to three years.
Many consumers assume that the cost they paid for the ring will serve as an adequate appraisal. However, the market for diamonds, gemstones and metals is fluid and can change your ring's value over time, " Lemick says. "An appraisal helps determine the true value of your ring so you can be certain."
For proper coverage, many insurance companies require a written appraisal by an independent, certified gemologist and appraiser. Unlike an estate appraisal or Fair Market Value appraisal, insurance appraisals are for the sole purpose of obtaining insurance to recover the value of lost, damaged or stolen items.
We recommend getting your ring professionally serviced twice a year to keep it looking good as new. It's better to be proactive with bi-annual inspections than to shell out for costly repairs or have to replace missing stones!
After the initial appraisal, you'll want to get your appraisal updated every three to five years to reflect the item's current and most accurate value.
Check for certifications from reputable organizations like the Gemological Institute of America (GIA), the American Gem Society (AGS), or the International Society of Appraisers (ISA). Additionally, consider the appraiser's experience, expertise, and reputation. Read client reviews and ask for references.
The value of your jewellery can change so it may be worth items valued every two to five years. This is particularly important if you want your insurance to remain valid, as some insurers will state that you need a valuation every so often to maintain cover.
In the jewelry industry, most “insurance appraisals” are given values of approximately 100% above retail value. These appraisals are inflated, and do not reflect the true value of the diamond.
A quick sell to a jewelry store or diamond buyer should yield you close to 50% of the current diamond retail value and the metal weight of the setting/mounting (often times $50-$150) with a little extra for the smaller diamonds (usually less than $100 if the diamonds are small).
Jeweler issued appraisals are notoriously variable and not audited by any third party. As such, these grading's cannot be considered accurate but should instead be treated as a guide.
An experienced jeweler is the best way to assess the value of your piece. During this process, known as an appraisal, the jeweler will evaluate several factors such as the materials used to craft the jewelry, the age of the piece, quality, and other existing conditions.
Often times engagement ring appraisals or other types of diamond appraisals reflect a value that is inflated – sometimes as much as double the retail purchase price - which allows insurance companies to increase the premium you pay to have your ring covered.
If your jeweler or retailer (a big-box store, for example) does not accept payment from insurance companies, only then would you receive a check. However, this is a reimbursem*nt, not a cash out. You would purchase your same kind and quality replacement piece and submit the receipt for reimbursem*nt.
We recommend taking the piece to a jeweler to be tested. They will have professional tests that will determine whether your jewelry is real as well as the purity of the metal itself. A certified appraiser will be able to provide the value of the piece as well.
One of the most infamous wedding etiquette rules revolves around how many months' salary one should spend on the engagement ring. It's known as the "three months' salary" rule, and it implies that a buyer should put three months of their salary toward a sparkler for their future spouse.
This is why experts unanimously recommend getting your ring prongs checked and tightened every six months. Regular wear and tear can affect the integrity of prongs. Activities involving physical contact, exposure to harsh chemicals, or even daily chores can contribute to prong wear.
But, there's still one very important step left on your jewelry journey: getting your engagement or wedding ring appraised. That's because, if you want to add your ring to your insurance—which you absolutely should, in case of damage, loss, or theft—the first thing you must do is have it appraised.
There's an acceptable variance when it comes to home appraisals. It usually depends on the prevailing market conditions. In markets with favorable conditions, the difference should be between 2% and 3% of the other values. For markets with challenging conditions, a 10% difference may be acceptable.
Most jewelry appraisals are conducted for insurance purposes, and this is generally what you'll be getting if you were to walk into a jewelry store and ask for an appraisal. This is also referred to as a retail replacement value and it's based on how much it would cost to replace the piece of jewelry (brand new).
Insurance appraisals are generally more expensive because they must be done by a certified gemologist and include a more detailed report. On the other hand, resale appraisals do not require such a detailed report and can often be done by a qualified jeweler at a lower cost.
The appraisal can take anywhere between 45 minutes to an hour per piece. If you have a lot of jewelry, it may take some time to appraise it. Karat gold jewelry may have a shorter appraisal duration than jewelry with stones, as the appraiser must first analyze the size, shape, clarity, and other features of the stones.
When you go for your jewelry appraisal, bring any documentation about the piece, such as a sales receipt, previous appraisals, or diamond certificates. You should also bring the jewelry itself in a clean and secure container.
Appraisal values are inflated so that down the road 2-5 years from the purchase date if you were to lose an item, it can be replaced even if prices of gold, diamonds, and gemstones has increased.
Anything that is worn daily should be checked every six months at a minimum. You may even consider going in three times a year for maximum protection. Another benefit of getting everything inspected regularly is that these on-time checkups can help prevent you from accidentally voiding any warrantee you may have.
The appraisal can take anywhere between 45 minutes to an hour per piece. If you have a lot of jewelry, it may take some time to appraise it. Karat gold jewelry may have a shorter appraisal duration than jewelry with stones, as the appraiser must first analyze the size, shape, clarity, and other features of the stones.
Rates depend on where you live, but for most people, jewelry insurance will cost 1-2% of the value of your jewelry. For example, a $5,000 engagement ring could cost as little as $50 per year to insure.
You may be paying too much insurance. Your jewellery valuation could help in the way of bringing your insurance premiums down if your jewellery has been 'overvalued' in the past. This is one reason why we recommend getting your jewellery valued regularly.
Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.
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“Generally, when we’re talking about the diamond itself, you would go to a graduate gemologist. That is a level of expert who would map the stone and be able to issue an appraisal to you,” Clark says.
