When looking around for contents insurance, many home owners choose a policy which fits their pocket or stay with a company through customer loyalty; both trusting that if the time comes then their provider will compensate them for loss or damage.
One area though where policy holders are underinsuring their possessions is that of jewelry. Whilst the majority of content insurance providers offer some cover for jewelry, the rising value over recent years means that many people may unwittingly be underinsured.
The rise in price of gold and silver
Silver has risen hugely in price over the last decade as has gold and with specialists such as those who sell Houston jewelry, here lies the core of the issue. Rings worn on a daily basis as well as pieces in jewelry boxes have a much higher value than ever imagined and with thieves often targeting easy to steal pieces in house burglaries which bring fast returns, policy holders are receiving a nasty shock when they realize they don’t have sufficient cover due to valuations being out of date.
Have the correct cover in place
Statistics show that jewelry theft makes up around a third of all household insurance claims and unfortunately not all are successful; industry experts believe that around 40% of policy holders are underinsured. If a claim is made, many policies will only pay out on the original valuation of a piece of jewelry. It’s vital then to have items made of precious metals and containing gemstones revalued on a regular basis and then updating the insurance provider with the figures.
How to update values
Any high street jeweler can help; they can send your rings, pendants and other items to the Institute of Registered Valuers and a revaluation report will be created. There will be a fee involved and this will vary depending on the value and how much time is required to assess each item. Ask for the scale of charges to be explained before handing pieces over but don’t be discouraged by any costs involved. These are small in comparison to the overall loss if there is damage, loss or theft in the future and the insurance company decides to not pay part or all of the claim.
All contents insurance – whatever the items – should reflect the true value. A significant underinsurance scenario can cause particular problems and so it really does make sense to have a professional valuation carried out as the majority of items are unique and are impossible to be replaced.
Tips for insuring jewelry
If you have any jewelry of any value, it’s time to take action in case the worse should happen.
- Tell your insurer of any pieces of jewelry you’ve acquired since your policy started or if you discover any item is worth more than the single item limit
- Undertake a professional valuation to reflect the current market
- Take photos of valuable items
- Keep a copy of the valuation lodged with your solicitor in case of fire or flood
- Don’t clean valuable jewelry yourself; use a professional service
- Keep any items not regularly worn in a safe
Obtaining an up to date valuation isn’t complicated or time-consuming and could stop potential heartache so have a look at your insurance policy to see what is covered and ensure valuations are up to date and your provider is aware of your situation.