A grading report describes a stone. A valuation states what a whole piece is worth, for a specific purpose. For insurance, that purpose is replacement: what it would cost today to have an equivalent piece made or bought.
Different values for different purposes
- Replacement value: the cost of replacing the piece new. This is the value an insurer works with.
- Market or resale value: what you would receive if you sold it. This is considerably lower, because the making and the trade margin are not paid back.
Make sure the valuation states which value it gives.
Who makes one
A valuation should come from an independent, qualified valuer, not from the seller's own price tag. Many countries have a register: in the Netherlands, valuers registered with Federatie TMV; in the United Kingdom, members of the Institute of Registered Valuers. The valuer examines the piece, weighs and measures it, identifies metal and stones, and describes and photographs everything in a report.
For a newly made piece, the goldsmith's invoice with a full description, together with any grading report, is often enough for the insurer at first. Ask your insurer what they require.
Check your policy
Home contents policies usually cover jewellery only up to a limit, and often only inside the house. Ask your insurer:
- what the limit per piece and in total is
- whether the piece is covered outside the house and when travelling
- whether loss is covered, or only theft and damage
- whether they require a valuation, and how recent it must be
More valuable pieces are usually insured separately, with the valuation as the basis.
Keep it up to date
Gold and stone prices change. A valuation from ten years ago no longer reflects the replacement cost. Having it renewed every few years is normal, and many insurers ask for it.
What to keep
Keep the invoice, the valuation, any grading reports and clear photos of the piece together, and keep a copy outside the house or online. If a piece is lost, the description is what makes it possible to have it made again. Because a goldsmith has made it before, a piece can often be remade from photos and the original specification.