It is necessary to have an engagement ring appraised before having it insured. An appraisal can be done by an independent agent or someone whom is employed by a jewelry store. The appraisal has certain criteria such as representing the true market value. In some cases the true market value won’t be the same as the purchase price. For instance the ring could be on sale and reduced in price.

Jewelers should always set their appraisal at the true market value. However there are some who would sell the ring at a reduced price yet still appraise the ring at a much higher price. Insurance companies generally pay to have the item replaced rather than an over priced appraisal. A Graduate Gemologist would be the best to do the appraisal.

There are several key points to remember about the appraisal. First, the ring should be described in detail as far as cut, size and mounting. Secondly, if the diamond comes with certification as to its quality this needs to be included in the appraisal. Thirdly, the value of the ring should be as close to true market value as possible. So the insurance company will have an accurate replacement value for the ring. Once the appraisal is completed, the insurance company will make the decision whether or not to insure the ring.

Insurance can be obtained through Homeowners as well as Renters insurance. As to what is available one needs to check with the insurance agent. Having the most accurate appraisal is the most important factor in obtaining insurance for the diamond ring. A large number of insurance companies now require the appraisal to be done by a Gemologist with specialized training in appraisals. So be sure to get specific requirements from the insurance agency.