Founder & Market Researcher
Why the Type of Valuation Matters
Not all jewellery valuations are the same. The figure on a valuation certificate depends entirely on why you need it — and using the wrong type can be genuinely expensive. An insurance valuation on a probate return means the estate overpays inheritance tax. A probate figure on an insurance policy means you're under-insured if you need to claim.
There are three main types of jewellery valuation in the UK, each using a different basis of value. This guide explains all three, puts them side by side, and helps you work out which one you actually need.
Insurance Valuation: Replacement Value
An insurance valuation tells you the replacement value of your jewellery — the cost of buying an equivalent new item from a reputable retailer if the original were lost, stolen or damaged beyond repair. This is always the highest of the three figures because it includes the jeweller's retail markup, VAT, and the cost of sourcing matching materials.
Insurers require this type of valuation so they know the maximum they might need to pay out on a claim. Most policies ask for professional valuations on items worth over £1,500, updated every three to five years to keep pace with rising precious metal and gemstone prices.
If your insurance valuation is out of date, you risk being under-insured — meaning you won't receive enough to replace the item at today's prices.
Probate Valuation: Open Market Value
A probate valuation states the open market value — what the item would realistically sell for between a willing buyer and a willing seller, neither under pressure to transact. This is the figure HMRC requires when calculating inheritance tax on an estate.
Open market value is always lower than replacement value because second-hand jewellery sells for less than new retail equivalents. HMRC can — and does — challenge probate figures that look too low, so a professional valuation from a qualified, independent valuer is essential protection for executors.
The key legal reference is the Inheritance Tax Act 1984, section 160. For items worth over £1,500, HMRC expects a professional valuation rather than an executor's estimate.
Resale Valuation: Realisable Value
A resale valuation gives you the realisable value — the price your jewellery would actually fetch if sold through a specific channel such as auction, private sale or dealer. This is typically the lowest of the three figures because it accounts for the costs and margins of the selling process.
Resale valuations are used when you're thinking of selling, dividing assets in a divorce settlement, or simply want to know what your collection is actually worth in cash terms. Unlike an insurance figure that reflects what it would cost to buy an equivalent, a resale figure reflects what someone will actually pay you.
The gap between insurance and resale values often surprises people. A ring insured for £5,000 might realistically sell for £2,000–£3,000, depending on the selling channel and market conditions.
Side-by-Side Comparison
Here is how the three types of valuation compare across eight key factors:
| Factor | Insurance | Probate | Resale |
|---|---|---|---|
| Value basis | Replacement value (new retail) | Open market value | Realisable value |
| Purpose | Insurance coverage | HMRC estate reporting | Selling or asset division |
| Typical figure | Highest | Middle (30–50% lower than insurance) | Lowest (varies by channel) |
| Who needs it | Policyholders | Executors / administrators | Sellers, divorcing couples |
| Update frequency | Every 3–5 years | Once (at date of death) | As needed before sale |
| Legal standing | Required by insurers | Required by HMRC | Advisory (supports negotiation) |
| Typical cost | £50–£125 per item | £25–£75 per item | £50–£100 per item |
| Tax impact | Higher value = higher premiums | Higher value = more IHT | No direct tax impact |
Same Ring, Three Different Values
To see why the distinction matters, consider the same 1-carat diamond solitaire ring valued for all three purposes:
Example: 1ct diamond solitaire, platinum setting, VS1 clarity, G colour
Insurance value: £4,500 — the cost of buying an equivalent new ring from a retail jeweller, including markup and VAT.
Probate value: £2,800 — what the ring would fetch on the open market between a willing buyer and seller. This is the figure reported to HMRC.
Resale value: £2,200 — what you'd realistically receive selling through a dealer or auction house, after their commission and margins.
Using the insurance figure for probate would overstate the estate by £1,700 — potentially costing hundreds in unnecessary inheritance tax. Using the insurance figure when selling would set unrealistic expectations and delay the sale.
Common Mistakes to Avoid
These are the errors we see most frequently — and they can all be avoided by getting the right type of valuation from the start.
- Using an insurance valuation for probate (overpays IHT)
- Using a probate valuation for insurance (under-insured)
- Relying on a 10-year-old valuation for any purpose
- Expecting to sell jewellery for the insurance value
- Using online estimates as formal valuations
- Get the specific valuation type for your purpose
- Ask for multiple reports in one appointment if needed
- Update insurance valuations every 3–5 years
- Use a resale valuation to set realistic sale expectations
- Always use a qualified, registered valuer
Which Valuation Do I Need?
The answer depends on what you're doing with the jewellery:
- Insuring your jewellery? You need an insurance valuation (replacement value). Your insurer will almost certainly require one for items over £1,500.
- Dealing with an estate after someone has died? You need a probate valuation (open market value) for HMRC. Do not use existing insurance valuations — they will overstate the estate.
- Selling jewellery or dividing assets? You need a resale valuation (realisable value) so you know what to expect before approaching buyers.
- Multiple purposes? Ask your valuer to prepare separate reports for each purpose in the same appointment. This is common when inheriting jewellery — you may need probate and insurance valuations simultaneously.
If you're still not sure, describe your situation when you request a valuation and your valuer will advise on the correct type.
Frequently Asked Questions
Can I use one valuation for multiple purposes?
Generally no. Each type of valuation uses a different basis of value — replacement value for insurance, open market value for probate, and realisable value for resale. A single valuation certificate states one basis of value, and using it for the wrong purpose can result in overpaid tax, rejected insurance claims, or underpriced sales. However, a qualified valuer can often prepare multiple reports in the same appointment, which saves time and may reduce the total cost.
Why is my insurance valuation higher than probate?
Insurance valuations state the replacement value — what it would cost to buy an equivalent new item from a retailer. This includes the jeweller's markup, VAT, and the cost of sourcing matching stones. Probate valuations state the open market value — what a willing buyer would pay on the second-hand market. The difference is typically 30–50%, because second-hand jewellery sells for significantly less than new retail prices.
Do I need separate appointments for each type?
Not necessarily. If you need more than one type of valuation, a qualified valuer can examine your items once and produce separate reports for each purpose. This is common when someone inherits jewellery and needs both a probate valuation for HMRC and an insurance valuation to cover the items they are keeping. Ask your valuer about combined appointments to save time and cost.
How much does each type of valuation cost?
Insurance valuations typically cost £50–£125 per item depending on complexity. Probate valuations range from £25–£75 per item, with discounts for collections. Resale valuations are usually £50–£100 per item. Most valuers offer reduced rates when multiple items are assessed in the same appointment. All valuation fees for probate are deductible as estate expenses.
Can the same valuer do all three types?
Yes, provided they are suitably qualified. Look for valuers registered with the Institute of Registered Valuers (IRV) or members of the Jewellery Valuers Association (JVA), as these professionals are trained in all valuation methodologies. Not all high-street jewellers have the expertise for probate or resale work, so always check their credentials and experience with the specific type you need.
Not sure which valuation you need?
Tell us about your jewellery and the reason you need it valued. We'll match you with a qualified valuer who can provide the right type of report.