If you have high value jewelry, antiques, fine art, collectibles or other valuables scheduled for separate coverage on your home policy, you most likely provided an appraisal or receipt to establish the insurance limit amount for the item. You might think that you’re all set because the insured value has been established; however, because values can shift over time, periodically updating appraisals is strongly recommended.
Jewelry should be appraised every few years for a several reasons.
- The market value of precious metals and stones can be volatile and may change from year to year.
- The value of jewelry may change as the inflation rate changes.
- Damage to jewelry may impact the value.
These same issues of market, inflation and condition can similarly apply to antiques, fine art, collectibles and other high value items you insure separately; therefore, they also need to have periodic appraisal updates. For jewelry the Insurance Institute of America recommends updating every two years, but it’s up to the you (the insured) to decide when to provide an updated appraisal to your insurer.
Ultimately, you want your appraisals be recent because if a claim occurs you want to be properly compensated. Outdated appraisals can result in you being under insured, which can result in you being compensated only up to your insurance limit even if its determined that the actual value at the time of loss was significantly more. If you have questions about appraisals, contact your insurance professional for guidance.