Appraisal & Gemological Services in Brookfield, WI
There are many reasons why someone might need an appraisal. These include insurance documents, point of sale documents, donation appraisals, and estate appraisals. These all serve different functions, so be sure to request the proper documentation for the specific job.
“What are your needs?
Insurance, estate, selling?
These all require a different type of report.”
An insurance appraisal is done so the client can obtain specific scheduled insurance on an item. The most common insurance appraisal is a replacement type policy. Basically, this policy protects for most perils and allows for the item to be replaced with a similar item of jewelry. Another type of coverage is the agreed value policy where the settlement is for cash and not for replacement of the jewelry. Generally, these policies would carry a higher premium. All insurance matters should be discussed with your agent to determine what coverage will best serve your particular needs.
An insurance appraisal is required when an item of jewelry is to be scheduled separately on an insurance policy. Standard coverage might include some aggregate allowance for jewelry. However, these limits are generally low and may not cover all perils. A separate insurance rider on any single item of jewelry will generally cover perils including theft, loss, mysterious disappearance, fire, etc. You should refer to the actual policy for explanation of coverage.
A point of sale document is similar to an insurance document in that a retail value is provided so that the client can purchase insurance. However, this document may be provided by the actual seller of the item of jewelry and it will report the actual selling price. In this type of appraisal, the seller is disclosing his/her role in the transaction. This type of document is valid and is usually acceptable for obtaining insurance.
Infographic provided by GemGuide.com
Other Types of Appraisals-Donation and Estate
When an item of jewelry is being donated to any charitable organization, an appraisal may be required. The value to be used for tax reporting is most commonly the fair market value. This is defined as the price that a willing buyer and willing seller would agree upon.
An example of fair market value might be the price that an item sells for at a local auction. Rarely is this price a full retail price. Depending on the condition of the item and the desirability of the item, the fair market value might be as low as “scrap” value or rarely, as high as retail value.
If planning a donation or estate contact the IRS via their website www.irs.gov for more information regarding appraisal expectations.
Finding the Right Appraiser
Finding the right appraiser requires an investigation of his or her qualifications. Jewelry appraising, unlike real estate appraising, is not a licensed profession. Some appraisers may belong to professional associations. It is also recommended that the appraiser have gemological credentials from a recognized trade school. However, remember that depending on the assignment, the level of expertise may vary just as it would with a specialist in the medical profession. A jeweler that does appraisals may not have certain credentials or expertise but may be qualified to do some appraisals, especially on items that they sold you.
“The most expensive appraiser is not necessarily the best, nor is the least expensive necessarily the worst. However, with appraisals, you generally get what you pay for.”
