Jewellery is valuable to us for many reasons. Including the obvious monetary value and the tremendous sentimental and emotional connections we develop for our pieces. In the unfortunate event of loss, at least we can cover one of those.
I’m a firm believer in decent and comprehensive insurance. When I decided to write this blog, I consulted my broker. It’s advisable that you do the same. However, here are some handy guidelines and bits to keep in mind.
All Risk vs. Specified Items
Lower priced items should be covered by a non-specified, all risk insurance which one often gets for free with your insurance. The important thing to keep in mind, is that it’s usually not a very high amount. In my case the total amount is R5 000.00 and limited to R2 000.00 per item. One option is to raise the amount for this specific part of your insurance. For instance, my insurance offers me cover of R30 000.00, limited to R10 000.00 per item at R150.00 per month.
Bare in mind that a valuation certificate is always handy to have, but required for items above a value specified by your insurer. The valuation will also contain specifications which will be very helpful, should you need to replace an item.
Specified insurance is popular for items of high value. The amount you pay will be relative to the value of the piece. In this case having an up to date valuation certificate is vital. It’s advised to update your valuation at least every two years and that you take the piece in to be assessed at the same time. This allows the jeweller to advise if any maintenance is required and gives your insurer motivation that wear and tear, which could cause loss, has been tended to.
There are variables which can also drastically affect the value of your jewellery; the gold price, increase or decrease in the prices of materials including stones and the big contributor, being the exchange rate. Regularly updating your valuation will help to prevent that you end up being under insured.
A valuation has to be obtained while the piece is in your possession and in good order. Having a jeweller provide a valuation after loss is fraud and extremely unethical.
Be aware of jewellers who over-value pieces. Remember, the higher the value, the higher your premium. It’s important that your valuation should be an accurate reflection of the value of the piece.
Personally, I add 10-20% to my valuations. Studio 1980 ZA’s pricing is considered to be competitive and this assists in bringing the value more in line with market standards.
The Fine Print
Lastly, research the conditions stated under your house content insurance. While your pieces are in your house, according to the requirement and specific amounts stated by your insurer, it may also be covered.
Don’t overlook insuring your jewellery. Although it can be a massive pain forking out the money for it each month, it’s unavoidable to avoid loss. Speak to your insurer to find the most cost-effective way to approach this and select which items to insure under the correct cover. Your insurer will also have clear requirements regarding safekeeping of items under the different conditions of the policy.
We trust that this information was helpful and you are welcome to contact us at firstname.lastname@example.org if we can be of any further assistance.
Regards & Blessings