Now that you own something worth caring about – let’s say a diamond engagement ring – you want to have a record of what it is and what it would cost to replace it, should something dreadful happen to it. Something dreadful includes leaving it on the sink in the ladies room of the club last night or leaving it next to your bed and someone (uninvited) visits your home and takes it while you’re at work!! There’s a lot of sentiment and love attached to the ring that no other ring will replace; however, you can get another similar diamond, if you know what you had to begin with!

Simply put, you need an appraisal! A document which describes the diamond and the ring along with an estimate of how much it will cost to replace it – today. This kind of document can be generated by the jeweler who sells you the ring, or it can be produced by an independent appraiser of jewelry. These two documents might even have different values. Why? That’s another story…

If the seller generates the report, usually it’s a statement of how much it would cost you to buy it again – at that store. Technically, it’s called a Statement of Replacement Cost. But, what if you want to replace it from someone else? What if you move? What if that jeweler goes out of business? An Appraisal reports on the cost to replace it – anywhere in your market area – by researching the market and learning what similar items cost at a number of different stores.

Which is better? For most purchases, the seller can generate the Statement of Replacement Cost for you and you can use that document to obtain insurance coverage or just keep for your records. However, describing your ring as “One diamond ring, 1.00 carat, good quality” is not enough information to identify the diamond or to replace it with “like kind and quality”. How much information is enough? Tomorrow… Dii