The Importance Of Valuing Jewellery – Are You Adequately Covered?

With last week`s day of romance your clients may have received gifts of significant value and it is important they have any new items covered on their insurance.
It is also a good time to stress to your clients the importance of having an up-to-date valuation for their jewellery, especially with the significant rises in the price of gold and diamonds.
Recent examples:

We have recently received some incredible valuations returning from our policyholders` valuers – here are some examples:

• A 6.10ct diamond ring, valued in 2004 at £48,000, has been re-valued at a staggering £137,650, a 187% increase.
• A 6.15ct diamond pendant necklace, originally valued in 2005 at £70,000, has been re-valued at £156,000, a 123% increase.
• Another case saw an item of jewellery valued by a NAG jeweller in 2007 at £29,950. The policyholder has just had this item re-valued and it is now valued at £72,000, that`s a 140% increase in 5 years! As a result of this re-valuation and the significant increase, the policyholder has decided to have the rest of their jewellery (currently insured for £100,000) re-valued to ensure their precious items are insured correctly.

These three examples highlight the importance of having a current, valid valuation on all items of jewellery and watches.

How do you get a valuation?

It is important that any valuation is undertaken to a very high standard and the highest level is represented by the National Association of Goldsmiths (N.A.G.). To find a local registered valuer please refer to our Appraisal and Valuation leaflet.
Appraisal and Valuation Service APP2 0911

How can we help?

If you find yourself in the circumstances of having to make a claim then certain underwriters include an uplift of up to 150% of the original sum insured, if the client has submitted to us, and we have accepted, an independent professional valuation which is less than three years old at the time of the loss. It is worth noting that given the recent price movements in the gold and bullion markets that even with this unique benefit there could still be a potential shortfall at today’s prices, but this will nevertheless provide a significant level of protection.

We recommend that a client has items of jewellery and watches re-valued at least once every three years. This, combined with the uplift of up to 150% of the sum insured, should go some way to indemnify your clients in the event of a claim and will certainly alleviate any financial shortfall. As you are aware, it is your client’s responsibility to ensure that their sums insured are maintained at their full value at all times.

This is a great opportunity to talk about risk management, highlighting the examples above, meeting your expectations in the event of a loss and for you, as their broker, to add value to your customer proposition.