Ace Jewellery advice on the risks of under insurance.
Recently there’s been yet another piece in the press highlighting the fact that so many households have jewellery that is under insured. These stories shouldn’t be viewed as a reason not to own jewellery. Instead they serve as a reminder that looking after your jewellery involves more than just maintaining and cleaning it.
So we felt it was a good time to remind you of the importance of having your jewellery valued and ensuring that your home insurance policy is up to date.
Now as you know we love jewellery! We love looking at it on display in our brightly-lit showcases, and we love creating bespoke pieces for our customers. There is however only one thing we love more, and that is seeing a customer leave our showroom wearing a piece of jewellery that makes them look amazing. It makes all our passion and commitment as a Jeweller seem worthwhile.
So imagine our disappointment when we hear from customers who have either lost their jewellery or had it stolen. If that wasn’t bad enough, imagine finding out that you are in fact under insured. In such cases an insurer can pay out much less than the replacement value of your valuables, or dismiss your claim altogether!
So how has this situation arisen and what can you do to protect yourself.
The rising price of gems and precious metals
As we’ve talked about in a previous blog post, the value of gold and silver has been rising steadily for a number of years. For example, gold has risen 500% in 10 years, while silver has risen an astonishing 900% in the same period. For example, the gold chain you’ve had since you were a teenager that you thought was worth around £500 could now have a replacement value of well over £2000!
Diamonds have also risen too with an increase of at least 40%, particularly in the last year and a half. Not all diamonds have risen in value by that degree, but some colours and clarities have risen more than others, so it’s essential that you get them appraised by an expert.
Check your insurance
Our experience in store has also highlighted a worrying issue of the real ‘cost’ of being under insured. Regardless of what you pay for an item of jewellery or where you buy it, the item should be insured for what the ticket price of a similar item would be from a retailer in your geographic area. Many people are under the illusion that their insurance company will hand them a cheque when they make an insurance claim. However, the industry norm now is to either replace the jewellery or give vouchers that you can spend at certain Jewellers. One popular system is the LMG Gemcheck Card. This is an electronic gift card pre-loaded with the assessed retail value of your claim, which you can spend at a Jeweller that they authorise.
The problem arises when have not had an up to date valuation of your jewellery, and you put in a claim. Because of the increase in the value of gemstones and precious metals, the amount you receive will not be enough to replace your valuables at today’s retail prices.
When was your last valuation?
In our experience there are certain steps you can take to protect from the risk of being underinsured:
- Have your jewellery valued at least once every three years, particularly given the current climate.
- Once you have your valuation, you should then check to make sure that any single items worth more than the ‘single item limit’ are listed separately on your policy.
- Keep a copy of your valuations and photographs of your jewellery, as this will increase the chances of any future claims being accepted.
We don’t want you to find this out only when it’s too late, so your next step is to call into our showroom in Leeds city centre at 1 Lands Lane, or get in touch with us here to book your valuation with one of our Valuers.
Our Jewellery Valuations cost a competitive 1.5% of the value of your jewellery, or £15 in the £1,000. We’re sure you’ll agree this is a small price to pay to protect your valued pieces.