Jewelry might require appraisal for a variety of reasons. The most common is for insurance. Insurance companies require formal appraisal reports for jewelry in order to “schedule” it, that is, add a rider to the policy that specifically covers the jewelry on an “all risk” basis. If your jewelry is not scheduled in this manner, it is likely that it is covered only against fire and theft (not breakage, mysterious loss or disappearance, or other perils) and is probably covered at a very low level under your homeowners’ policy. This level may be as low as $1,000, and might carry a deductible of $250 or $500 for which you are responsible.
Jewelry is also frequently appraised in order to determine estate tax liability as mandated by the Internal Revenue Service. Executors and attorneys frequently require such appraisals. Appraisals might also be required for the following functions: