Whether it’s your engagement ring from 1998 or the heirloom bracelet passed down from your grandmother, your jewelry may be worth far more today than when it was first insured. Most jewelry insurance policies include a small inflation adjustment — typically 1–5% — but those increases often fall short of the true replacement cost of your piece. And in today’s market, that gap can be significant.
With supply chain challenges driving up material costs and demand soaring for high‑quality gemstones, understanding your jewelry’s current value is more important than ever. For example, a diamond purchased in 1960 for $2,700 could be worth more than $28,400 today — averaging a 14% annual increase.
If your jewelry insurance policy hasn’t been updated to reflect current values, you may not receive the full amount needed to replace an item if it’s lost, stolen or damaged.
Why Updated Appraisals Matter for Your Jewelry Insurance
Inflation, shifting market demand, and rising material costs all impact the value of fine jewelry. These changes also make jewelry claims more expensive — and more complicated — than in years past.
If your policy is based on an outdated appraisal:
- Your insurer will only pay up to the old value or the original purchase price.
- Blanket coverage limits can create unexpected shortfalls. For example, a policy with a $2,500 blanket limit will only pay up to $2,500 per claim, regardless of the item’s real value.
To avoid being underinsured, we recommend structuring your jewelry insurance using a mix of scheduled items and blanket coverage, supported by accurate, up‑to‑date appraisals
After Your Appraisal: Update Your Jewelry Insurance Policy
Getting a new appraisal is only half the job — the next critical step is updating your jewelry insurance policy so it reflects the current value. Here’s why updating your policy after an appraisal matters:
- Accurate coverage: Your insurer adjusts your scheduled item limits to match today’s replacement cost.
- No surprise shortfalls: You avoid paying out-of-pocket differences during a claim.
- Better protection for heirlooms: Pieces with sentimental and monetary value deserve precise coverage.
If your last appraisal was five to ten years ago, it’s time to reassess. Premiums are often minimal compared to the benefit of having accurate protection. Before scheduling a formal appraisal, start by checking with the original jeweler or a trusted local jeweler to get an informal sense of current pricing.
How Often Should You Reappraise?
Because jewelry values now fluctuate more frequently, NFP recommends reappraising your valuables every few years. This is especially important for:
- Rare or high‑demand gemstones
- Signed or collectible pieces
- Heirlooms with unclear provenance
A reappraisal ensures your jewelry insurance remains aligned with the current market.
Work With Expert Brokers Who Understand Jewelry Insurance
If you work with a broker who specializes in jewelry and collectibles, they should be reviewing your jewelry insurance policy with you regularly. At NFP, we track market trends for precious metals, watches, diamonds and gemstones — and advise our clients when those changes could impact their coverage.
During your policy review, your broker may assess:
- New pieces added to your collection
- Storage upgrades such as bolted safes (which may qualify for safety credits)
- Whether it’s time for a new appraisal
- Coverage gaps between scheduled and blanket items
This proactive approach ensures your jewelry insurance stays accurate and effective, helping eliminate surprises during claims.
Protect Your Investment
You deserve to know, and properly insure, the true value of your jewelry. Regular appraisals and timely updates to your jewelry insurance policy ensure you aren’t left underinsured when a claim occurs.
To avoid costly claim surprises and ensure your valuables are fully protected, connect with our jewelry and collectibles team for guidance tailored to your collection.
