It is a fact that despite the recession, the value of jewellery has dramatically increased over recent years. According to the National Association of Goldsmiths, the cost of gold has more than trebled since 2004 – and in actual fact it has increased significantly over the last 10 years. It doesn't show any sign of abating either – in March 2011 gold hit a peak of £882 per ounce. Silver also hits its highest price for 31 years – gemstones are also increasing in price too. All this begs the question as to whether or not you have sufficient insurance in place for your jewellery?
People are often unaware of the true value of their jewellery and can often be shocked to learn that, in the event of loss, their insurance no longer covers the full cost to replace the items. One problem is that the cost of precious metals and gemstones does fluctuate and so it can be hard to make sure your insurance keeps pace.
If you have a massive collection worth millions, you will no doubt keep on top of the insurance situation. However, if yours is more a collection of sentimental items and heirlooms passed down by the generations, they could be at risk because generally people owning such items tend to under insure because they have never thought to have them collectively valued or considered them to be of great financial worth.
A standard contents insurance policy may exclude claims for jewellery above a certain value, so it is important that insured limits are checked along with the policy conditions to ensure that jewellery is adequately protected, both whilst being worn and also whilst be stored.
Recent research indicates that 50% of women had never had their engagement ring valued whilst a further 40% had valuations which were long out of date: this leaves on 10% who understood the true monetary value they are waving around on their hands!
Professional advice is to have your jewellery valued at least every three years. A comprehensive High Net Worth insurance policy will cover your most precious and expensive jewellery, although there are other steps you need to take. For example, in the event of a claim it can sometimes be difficult to get a valuation for items which have never been formally documented. You need an accurate record of your jewellery – with photographs if possible, which can be used to help when looking for a replacement or to commission a replica.
Bear in mind 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 piece of jewellery 'off the shelf' can often prove impossible, so being able to produce photographic evidence to support a claim can speed up the process.
Speak to a professional insurance company – Westhill Insurance Services can give you excellent advice with regard to your treasured possessions and their insurance position. The staff at Westhill are dedicated to ensuring their clients have the best possible insurance at the best possible price and can offer sensible and in-depth advice as to how you can protect your jewellery – and in turn your memories. Make sure that if you do lose your heirlooms or precious items, they are fully insured. Don't automatically assume that they will be covered under your contents insurance – make a phone call and make sure that you are properly insured.
Contact Westhill Insurance Services, today.