Category: Insurance
The increasing value of your jewellery
You may be surprised to learn that, despite the recession, the value of jewellery has rocketed in recent years.
According to The National Association of Goldsmiths, the value of gold has more than trebled since 2004. In fact, gold has increased significantly over the past 10 years. And, it shows no signs of abating, in March 2011, gold hit a peak of $1,444 per ounce. With silver also hitting its highest price in 31 years, and gemstones also consistently increasing, it begs the question: is your insurance policy providing adequate cover?
People are often unaware of the true value of their jewellery, and can often be shocked to learn that, in the event of a loss, their insurance no longer covers the full cost to replace the items.
Tracey Warren, Listed Property Insurance expert, tells us, “The value of gold and gemstones can be unpredictable, so the effect of the wrong value being insured can be catastrophic.”
“Of course, if your collection of jewellery is worth millions, the need for a specialist insurance cover may be glaringly obvious. But, we find that, sentimental items and heirlooms passed down through generations are those typically underinsured, as the current owners have never thought to have them valued, or considered them to be of any financial worth.”
A standard contents insurance policy may exclude claims for jewellery above a certain value, so it’s important that insured limits are checked along with the policy conditions, to ensure that jewellery is adequately protected, both whilst being worn and when being stored.
Surprising research from specialist High Net Worth insurer, Chubb, discovered that 50% of women had never had their engagement ring valued, whilst a further 40% had valuations that were out of date; leaving just 10% of those questioned understanding the true monetary value on their hand.
“Statistics like this highlight the importance of getting jewellery valued by a professional on a regular basis. Certainly within 3 years,” Tracey continues.
A comprehensive High Net Worth insurance policy will cover your most precious and expensive jewellery, although there are other steps that need to be taken.
“It’s worth noting that, in the event of a claim, it can be very difficult to get a valuation for items that have never been formally documented,” Tracey explains. So, an accurate record of your jewellery, with photographs, can help when looking for a similar replacement, or to commission a replica.
“However, it’s worth remembering that some documents may not actually give the true value. Whilst an inherited piece of jewellery may have a probate value, this is not the same as a replacement value.”
“Photographic valuations provide essential proof of the quality and make up of a piece. Trying to find a similar item in the shops can often be impossible, so being able to produce evidence to support your claim can really speed the process up,” Tracey concludes.
If you would like any further information please feel free to call Tracey on 01525 873322 or e-mail: tracey@lpoc.co.uk