Category: The Appraiser’s Notebook

Insurance: No Profit – No Loss

Barron’s Dictionary of Insurance Terms defines indemnity as, “Compensation for loss. In a property and casualty contract, the objective is to restore an insured to the same financial position after the loss. But the insured should not be able to profit by damage or destruction of property, nor should the insured be in a worse financial position after loss.”2 In essence, the insured is not to make a profit or sustain a loss but to break even in the event of casualty loss.

Price Guides – Friend or Foe?

How convenient it is to use a price guide to retrieve prices for diamonds and colored stones. Merely adding a markup to determine a value seems too easy. Some gurus of valuation theory are emphatic that price guides should be banned. Other experts embrace price guides as a key part of the process.

Appraisals – PDF Formats

A common request from clients to the appraiser is to email a PDF of the appraisal to them or directly to their insurance agent (which you will soon see is not a good practice). Some…

Valuing a Crazed Opal

Although the assignment discussed here involves a cracked or crazed opal, the methodology is similar for any damaged gemstone. The appraiser only has what is in front of them, and if it is a damaged…