Periodic Re-Appraisal — Why Insurance Schedules Need Updating Every Two to Five Years
Periodic Re-Appraisal — Why Insurance Schedules Need Updating Every Two to Five Years
A scheduled revaluation of insured jewellery to keep insured values aligned with current replacement cost in a market that does not stand still
Periodic re-appraisal is the practice of having insured jewellery revalued at regular intervals — typically every two to five years — to keep the insured value aligned with the current replacement cost of the piece. Most insurers offering scheduled-jewellery coverage either require or strongly recommend such revaluations as a condition of maintaining the schedule, and the most common cause of an underinsurance dispute after a loss is an appraisal that has not been updated for a decade or more.
Why values move
Gemstone, precious-metal, and jewellery markets do not stand still. Coloured-stone prices for fine ruby, sapphire, and emerald have moved substantially over the past two decades, with origin-graded Burmese ruby, Kashmir sapphire, and Colombian emerald posting multi-fold increases at the upper end. Diamond prices, while more variable in direction, have generally trended higher for larger and higher-quality stones, with the price of fine three-carat-plus material substantially higher in 2025 than in 2010. Gold and platinum metal markets have moved meaningfully over the same period, with gold above $2,400 per ounce in 2024 representing a multiple of its 2010 levels.
An appraisal from 2010 valuing a three-carat sapphire ring at $25,000 may, by 2025, undervalue the same piece by half or more, depending on the origin status, the colour quality, and the metal content. The owner with such a stale appraisal who suffers a loss in 2025 will discover at the worst possible moment that the insurance settlement is far below what is required to replace the piece, and the gap may exceed the deductible by a substantial margin.
What insurers require
Specialty jewellery insurers including Jewelers Mutual and Chubb require scheduled-item appraisals to be updated periodically as a condition of continuing coverage on items above certain value thresholds. Standard homeowners policies that schedule jewellery as a rider have similar requirements that vary by carrier. The two-to-five-year interval is the common practice, with shorter intervals applied to higher-value or more volatile items (notably fine coloured stones with origin sensitivity) and longer intervals applied to more stable categories.
An updated appraisal must come from a qualified appraiser. The credentials that insurers accept include the GIA Graduate Gemologist (GG), the FGA from the Gemmological Association of Great Britain, and the various certifications from the National Association of Jewelry Appraisers (NAJA) and the American Society of Appraisers. The appraiser should be independent — not the seller of the piece — and the appraisal should clearly state the methodology used, the date of valuation, and the basis (replacement cost, fair market value, or another defined basis appropriate to the insurance contract).
What the appraisal contains
A current scheduled-jewellery appraisal includes a photograph of the piece, a detailed description of its construction (metal type, weight, hallmarks, maker if known), a full gemstone description with weight, dimensions, colour, clarity, cut, and treatment status, the relevant laboratory reports if any, an assessment of the current replacement cost, and the appraiser's signature, credentials, and contact information. For fine coloured stones with origin sensitivity, an updated origin and treatment report from a recognised laboratory is the standard supporting documentation.
In the trade
Jewellers should advise clients of the recommendation to revalue at appropriate intervals as part of after-sale service. Most well-run shops maintain client records and can flag pieces approaching the recommended revaluation date. The cost of an updated appraisal is modest relative to the cost of an underinsurance gap, and the appraisal can be combined with a routine inspection of the piece for setting integrity, prong wear, and clasp function.