What is “retail replacement value?”

Retail Replacement Value is the dollar amount that jewelry appraisers normally use on an appraisal for insurance purposes.  This value is an estimate of the highest full price you might pay for an item at a retail jewelry store, without any discounts or sales.  Using this value ensures that you have adequate insurance coverage.  An inflated appraisal may make the owner of the jewelry feel good about an acquisition, but only the insurance company benefits financially through increased premiums.

What insurance do I need for my jewelry?

You may have some built-in coverage for your jewelry with a homeowner’s or renter’s policy.  This insurance has a dollar limit for jewelry included with the contents of your home and may only cover theft or fire.  More valuable jewelry should be individually appraised and “scheduled” or added to a “personal articles floater.”  This type of insurance usually also covers damage and mysterious losses.

Why can’t I just give the store receipt from purchasing my jewelry to the insurance company instead of paying for an appraisal?

If you have a loss, the burden of proof is on you to show the insurance company how much you have been damaged.  Many jewelry store receipts use generic descriptions without even mentioning the total carat weight of the gemstones in a piece of jewelry, let alone the quality of the gemstones.  Many insurance companies will not write you a check for what you paid for a piece of jewelry or even what it is appraised for.  They want you to go to their jeweler to get a replacement.  In order to get a replacement equal to what was lost, you need a detailed description of the jewelry including identification and grading of gemstones.