Jewellery has played an important role for thousands of years because of its sentimental value, the way it makes you feel when you wear it, investment purposes and it being a gift that is a symbol of beauty and confidence.
Some jewellery may be deemed as ‘irreplaceable’ for example a family heirloom and for a piece such as an expensive watch or bracelet, if you were to have it stolen or misplace it, wouldn’t you want your insurance policy to cover its full value so you could replace it?
At LIFT-Insurance we know that many clients purchase items of jewellery often at retail value or even sometimes below retail value. This can be the case if they have a relationship with a jeweller or are deemed a VIP. They then only insure the piece for the price they paid, rather than the items actual value within the market. The result is that in the event of a claim the maximum amount you would receive back would be the amount it’s insured for.
This is why we remind clients they need to take into consideration that jewellery increases in value. In the event an item was lost or stolen, if you only received the amount, you originally paid the likelihood is you will not only be out of pocket but also struggle to replace the item for that amount. For a lot of clients, it isn’t about getting the money they originally paid back it’s more about actually being able to replace the item. This may be due to it being sentimental, it may have been a gift, or they may even be invested in the brand and like the appearance of the item. This is why it is so important your item is valued at the correct price with your insurer.
For example, as of 1st January this year the average Rolex GMT-Master II Steel was £7,550 at retail with a replacement cost of £8,400, a 11.3% increase. A Rolex Submariner Steel was £6,800 retail and replacement being £7,150, a 10.9% increase. A Rolex Daytona Steel was £10,500 retail and £11,600 to replace, a 10.5% increase.
As well as this, more common and popular watches are beginning to, if not already, become discontinued. Even rumours of a watch becoming discontinued creates a huge increase in the value, as people want what they can’t have! Examples are Rolex Explorer 36mm, Rolex Submariner Hulk, Rolex GMT Master II Batman, Patek Philippe 5711.1R-001, Tag Heuer Classic Monza and the IWC GST Chronograph. This is where items should most definitely be revalued, as the value of discontinued pieces skyrocket.
Since November 2019, the cost of an ounce of gold has increased by 60% and silver by almost 85%. An example of this is a pair of Chopard 18 carat white gold and diamond ‘Happy Diamond’ drop earrings. In 2003 they were £1,875, 2011 – £3,120 and 2019 – £5,170.
Our advice to clients from feedback from our insurers is that valuations should be kept ‘up to date’ and valued within the last three years. However, for some items of jewellery they are increasing in value every 3-6 months, so if this is the case with your piece it is vital that valuations are completed within a shorter time frame to ensure you receive full market value in the event of a claim.
We have seen a large influx in claims recently and we have been seeing the impact of underinsurance. It’s never nice to hear from new clients that they have previously been unable to replace an item as they have only received a payout for the price they paid, rather than what the item is actually worth.
Don’t leave yourself underinsured, contact us today for a free review of your current insurance to see if there are any gaps in cover and we can offer an alternative quote.