Valuers

It may not be widely understood that the onus is on the owner of property to prove the worth of his/her belongings in the event of submitting a claim to insurers following a loss. Insurers are not duty bound to accept old or poorly described schedules or other scant evidence of value that is sometimes submitted to them by claimants.

Only by supplying your insurers with an up-to-date insurance schedule prepared by a competent valuer, preferably by a National Council of Jewellery Valuer (NCJV), can you be sure to be in a position to establish a valid and provable claim.

So, a current valuation schedule can help to:

Your NCJV Registered Valuer understands your needs as well as your insurers' perspective, and will provide the peace of mind that is the bedrock of insurance. Remember, that if you do make a claim, you may have the right to insist on the choice of jeweller to supply replacement goods– check your policy before you sign; do not be bullied into either being told to whom you have to go for replacement articles, or accepting offers to replace through catalogues. Finally, it makes good sense to obtain special insurance for goods such as jewellery because of the portable nature of such goods. It is sensible to insure on an 'All Risks- Special Effects policy' basis rather than rely on a household contents policy. This may be more expensive in the short term, but will certainly provide better cover and prove more efficacious in the longer term.

A typical jewellery valuation involves examining each item to assess the quality, and arrive at a value judgement based on current market conditions . While two items may appear identical to the untrained eye, each has qualities that can effect the final valuation.

Due to fluctuations in the US dollar, gold price and diamond prices, the value of jewellery items is not stagnant. We recommend that jewellery items be revalued regularly to ensure that your insurance cover is still valid cover for that item. The fee for revaluations is based on a time required and the number of items. Post loss assessments are usually charged on a fixed fee or according to the time spent on them for more substantial cases.

In the case of period or antique jewellery and other articles not easy to replace on the normal retail market, valuers will take a different approach and will provide a value based on the concept of 'open market' values. Here the appropriate type of marketplace for replacement articles may be markets or auctions, or even specialist dealers, to provide suitable sources for reaching accurate values. Thus, in the event of a claim to insurers, it may need to be specified that a like-for-like replacement may not be feasible. It may be that insurers sometimes consider a cash settlement in such cases, or may offer an alternative course of action.

Consumers should only accept valuation certificates that clearly state the purpose of the document - eg insurance, deceased estate, auction, private sale or divorce settlement - and the type of market on which valuation is based. The different markets and reasons for a valuation include:

A detailed assessment that estimates the likely replacement price at a traditional shop. This type of valuation is often used by insurance companies.

The minimum hammer price achievable in an ideal auction market, where time is not a factor. This figure does not include premiums or commissions which can vary at each auction.

An estimate of a reasonable second-hand price between a willing buyer and seller in a fair or specialised market without time constraints.

The price that can be expected when an article must be sold within a short time frame in potentially non-ideal market conditions.

A value for used items that takes into account the condition, desirability and collectability of the item.

A fair and reasonable second-hand price when someone wants to sell an item to a member of the public. In such cases, the valuer acts as an unbiased expert and GST, sales tax or duty is not included in the valuation.

The Family Court may require a valuation of jewellery in a divorce settlement. Written directions are provided by the solicitors with the valuation usually based on “fair market value”, although this may vary.

Again, written directions are provided by the lawyer or executor of the will, with the valuation reflecting the current market value or the requirements of the will.

A quality assessment report is prepared for people who require an accurate appraisal of jewellery without a value statement. Such reports contain detailed technical information, with the assessments conducted in the same way as a full valuation. They are useful for people wanting to:

A valuation is an informed opinion based upon formal training in gemmology and other specialist areas of product knowledge with substantial experience within the industry. The consumer should endeavour to seek a valuation carried out by an National Council of Jewellery Valuer (NCJV) Registered Valuer . In this way, you can rest assured that the valuation will be undertaken professionally, and to prescribed NCJV standards and ethically. NCJV registered valuers are liable to routine monitoring by the NCJV to maintain the standards of the Council.

At Forever Diamonds, your first valuation is included in the cost of the item purchased. Subsequent Valuations can be supplied at a fee. Please contact us to discuss your requirements with our on-site NCJV registered valuer.