With Valentine’s Day fast approaching, there will be those of us who will be thinking of an extra special way of saying: “I love you.” One way of showing your devotion is with the gift of jewellery.
Whether you are purchasing a single piece, or adding to a more extensive collection, it is imperative to make sure that you have the right level of cover. The only way to establish this is by knowing the value of your jewellery collection. Due to the price increase of both precious metals and gemstones, having your jewellery valued regularly is essential – a good rule of thumb is once every 3 to 5 years by a certified jeweller.
It is worth noting, in the event of a claim, insurers are likely to stick to the value of an item as specified on a policy. For example, should a ring be noted on an insurance schedule at £25,000 following a valuation from 7 years previously, if this ring is then lost, £25,000 is the maximum that can be claimed, despite it being highly likely that in the time since the last valuation, the value of the ring will have increased significantly.
Worryingly, the underinsurance of jewellery remains very common. One trap many of us fall into is simply valuing the most expensive items, when in fact a multitude of fine jewellery with smaller items can add up to substantial amount. As such, knowing the value of all your jewellery, rather than just the most expensive items is vital. Indeed, many of us may be put off by the initial cost of a valuation, having spent a large amount of money on expensive gems. However, in the long run, the outlay for an accurate price of your jewellery and peace of mind is more than likely going to be cheaper than the loss as a result of being underinsured.
Finally, it is true that there are many things we’d rather do than read a policy wording, but when it comes to jewellery cover it is certainly worth doing. Depending on the value of the item, insurers may well apply endorsements relating to the wearing habits and clasps and settings of the jewellery. They may stipulate expensive items of jewellery are only covered when worn or locked in a safe and that the clasps and settings are checked on a yearly basis.
So, to ensure you don’t leave a diamond shaped hole in your loved one’s heart – or in your bank balance, please make sure your insurance is doing what it is meant to do – protecting you, and your valuables.
