RETAIL REPLACEMENT VALUE: WHAT DOES IT MEAN?

The appraised value arrived at is termed “Retail Replacement Value”, and is considered to be an average retail value adequate for insurance purposes in this geographical area.

My philosophy in arriving at this value is to make sure that my client will be adequately covered to replace the item in case of loss, but not pay unnecessarily high insurance premiums for an unrealistically inflated appraised value.

Many consumers are unaware that insurance companies have the option to replace a lost gemstone or jewelry item with another one of equivalent quality, or “cash out” the insured at the price it would take them to replace the item. Because of that, I take painstaking care to make sure your gemstone or jewelry item is comprehensively described. In case of loss, your insurance company will not unknowingly replace the item with one of inferior quality, or “cash you out” at a value less than what it would take to replace your item.

To pay unnecessary premiums on an appraised value that won’t do you any good in case of loss makes little sense, so the values arrived at are figured at a “median” level. The following example is an analogy: A lamp is available at a cut-rate serve-yourself department store for $50. The same lamp is available at an upper-scale full-service department store for $90. Both values are fair taking into consideration all factors involved, and if I were in the lamp appraising business my Retail Replacement Value for that lamp would be the median figure of $70.

Bear in mind that the Retail Replacement Value is an informed opinion. The more informed the appraiser, the more accurate the opinion. That’s why it’s important to check out the experience and credentials of an appraiser. Mine are listed elsewhere in this brochure, along with a comprehensive list of client references.

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