Role of valuations

The vast majority of insurers will insure unspecified jewellery up to a total value of approximately $5000and a maximumum value of each item of approximately $1500.00 using a home and contents policy. In almost all cases only when a claim is lodged will the insurance company request proof of purchase and proof of value. Proof of value will not necessarily require a valuation certificate in these instances. most jewellery claims fall under the unspecified jewellry category and consumers are strongly advised they can provide proof of purchase and value. A detailed sales docket from the retailer will often suffice. At the very least consumers should photograph their jewellery items as close up as possible.

While there are numerous reasons for formally valuing jewellery, the primary reason is for insurance purposes. Most insurance companies insist on a valuation and proof of purchase for items of jewellery valued above $1000.00 to $2000.00 (depending on the insurance company involved) before issuing insurance cover.

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 pieces of jewellery may appear identical to the untrained eye, each has qualities that can affect the final valuation. Different markets may vary enormously and this factor is taken into account by the valuer.

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.

Under current Australian consumer law anyone can prodcue a valuation, but the JAA strongly recommends consumers request that a valuation be produced by an independent registered valuer. All registered valuers are required to be members of the National Council of Jewellery Valuers (NCJV). These valuers must undergo training in all the key areas of gemmological study, gemstone grading and the detection of synthetic gemstones. They must also commit to ongoing education to keep up-to-date with industry changes in order to maintain their membership as an registered valuer.

National Council of Jewellery Valuers

The National Council of Jewellery Valuers will be able to give you the names of independent registered valuers in your area. To visist the NCJV website please click here.