An appraisal is a document stating the approximate retail replacement value of an item. It is calculated using current market data, which reflects typical retail prices. The appraisal includes the cut, color, clarity, and either carat weight for diamonds or millimeter dimensions for gemstones, and the craftsmanship of the item. Your appraisal ensures that in the case of loss, theft, or damage your insurance company will give you an equal replacement of your item. The more information contained in the appraisal, the better chance you have of receiving the exact replacement for that item. Your insurance agency can rely on this appraisal to calculate a coverage rate for your diamond or piece of fine jewelry.