Is your Jewellery Insured?

Is your Jewellery Insured?

Is your insurance policy up to date?

With the ongoing price rise of gold, Platinum and especially Palladium over the past few years we have noticed that some of our customers are now under insured. Some insurance companies will only pay up to the maximum threshold stated on their policy. If your jewellery valuation is out of date you could be losing out, should you need to make a claim.
For example: Palladium has sky-rocketed recently. A men’s Palladium wedding band made by us 4 years ago was $1500. Well below his insurance threshold of $2000. At current market value a replacement of this ring is now $4089. On Settlement the insured will only receive the maximum insured value of $2000.

The combined total value of your jewellery sneaks up on you and before you know it your insurance won’t cover all of your jewellery.
Most insurance policies state clearly what the individual and total limit is of your insured jewellery. This varies between insurance companies but some have a low limit of $1000 per item. If you own an item above your insured limit you will need a valuation report.
It is also if not more important to know if you are insured for full replacement or indemnity value also described as Current or market value.
Full replacement means when a claim is settled the lost item will be replaced.
If you rather receive the cash value they will only pay out market value. This is what you will receive should you have sold the item.
Other insurance options are indemnity, Current or market value. This means when a claim is settled you will receive a payout on the value your item would have on the second hand jewellery market.
Insurers do not cover loss caused by wear and tear meaning that if you lose your diamond because the claws were worn your insurance will not honour your claim. It pays to get your jewellery checked from time to time by a qualified manufacturing jeweller.

Read the small print of your policy. I know it’s a tedious job but could save you some drama should you need to make a claim. Also, some companies insist on making a claim within 24 hours of your loss.

Check with your insurer if you are allowed to get your lost jewellery replaced by a jeweller of your choice, it may be that you are limited to the store of their choice. After all, a bespoke Jewel Beetle piece is not quite the same as a voucher for Michael Hill!

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