When it comes to insuring your fine jewelry, getting an appraisal is an essential step—but not all appraisals are created equal. Many people assume a higher value means better protection. But an inflated appraisal can actually do more harm than good.

As a Master Gemologist Appraiser based in San Diego, I’ve seen firsthand how overly generous valuations can cost clients money—and peace of mind.

What Is an Inflated Appraisal?

An inflated appraisal assigns a value that far exceeds the piece’s true replacement cost. This might be done to impress a client or reflect outdated retail pricing. However, the purpose of an insurance appraisal is to reflect the realistic cost to replace the item with one of like kind and quality, not to speculate or “bump up” value unnecessarily.

Why It's a Problem

• Higher Premiums
  The higher the appraised value, the more you’ll pay in insurance premiums. Over the years, that can add up to hundreds—or even thousands—of dollars for no added benefit.

• Trouble During a Claim
  If you ever need to file a claim, your insurance company may investigate the appraisal. If they determine the value was excessive, they could challenge the payout, delay processing, or request a new appraisal altogether.

• Lack of Credibility
  Inflated appraisals can raise red flags—especially in legal, estate, or tax-related contexts. They can erode credibility and, in some cases, trigger audits or disputes.

• False Expectations
  An insurance appraisal reflects the retail replacement value—not what you'd get if you sold the item. But when that value is inflated, it can create unrealistic expectations. If you later decide to sell the piece, the market value—especially for pre-owned jewelry—is typically much lower than the retail value, and even more so if the appraisal was overstated from the start.

What a Proper Insurance Appraisal Should Include

• A detailed description of the item, including gemstone quality, measurements, and metal type...

• Clear photographs

• A realistic replacement value based on current market conditions

• The methodology used to arrive at that value

• The appraiser’s credentials and signature

• Compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), the recognized ethical and performance standards for appraisers in the United States

A USPAP-compliant appraisal ensures that the valuation is both credible and defensible, providing greater protection for you in the event of a claim.

Understanding the purpose and standards of a proper insurance appraisal helps ensure you're not overpaying for coverage—or left unprotected when it matters most. Accurate, ethical valuation not only reflects the true replacement cost of your jewelry, but also builds trust and transparency across all future transactions.

Need a Jewelry Appraisal in San Diego?

Schedule your appointment today and ensure your jewelry is properly documented and insured—with a report you can trust.

👉 lajollagemappraisal.com