Insurance replacement appraisal on vintage chain

I have a question about appraising (insurance replacement value) an
item that appears to have antique value. I’ve told the customer we
could only value the item based on the Market Value of Gold today of
machine produced chains. She agreed that was fine and did not wish to
pursue an Antique Dealer to value the piece. (The item is an 18 inch
14K yellow gold double concave linked chain; double strand with a 14K
rose gold pendant crested with a star and crescent moon. There is a
2.5 mm round cabochon garnet set in the center of the star and 7
small natural pearls graduating in size from 1.5 to 2.5 mm set in the
crescent. The pendant has two 14K yellow gold hanging tassels. No
hallmark stamps. I did acid test for the gold content. Entire item
weighs 44.2 grams.)

Am I correct with attaching a statement that I am describing the
piece as best I can with a current fair market for gold replacement?
In other words, is it legal and ethical to value it as though it is
a mass produced chain with no knowledge of it’s possible historical
(or hand-crafted) value?

Thank you in advance.
Dale Pavatte, Diamonds For You, Decherd, Tennessee

David- It depends on the insurance policy. Many insurance policies
state that they will replace it themselves with “like and kind”. Some
have a “retail replacement” clause. Have your client contact his or
her insurance company to find out the specifics.

Jo Haemer
timothywgreen.com