Important facts to be aware of
Crime targeting valuables remains a reality in many countries. Jewellery, firearms, and other high-value items are frequently targeted, making appropriate insurance and secure storage essential. Beyond the financial loss, theft can cause lasting emotional distress.Understanding jewellery insurance valuations
Insurance valuation certificates typically reflect a “new-for-old” replacement value, as preferred by insurers. These values are often significantly higher than the realistic second-hand or market value of jewellery and can result in unnecessarily high insurance premiums. It is important to understand that heavily worn or out-of-fashion jewellery usually holds little resale value beyond the intrinsic value of the metal and gemstones. While sentimental value may be immense, it cannot be recovered after loss or theft. If you would not choose to replace an item, paying a premium based on full replacement value may not be practical. Many valuation certificates also fail to specify whether a piece was handcrafted or mass-produced. This can disadvantage clients whose bespoke jewellery is lost, as insurers may replace it with lower-quality mass-produced items unless the valuation is detailed and precise.What you should do
- Obtain an up-to-date insurance valuation certificate that includes photographs and a detailed description of each item.
- When not worn, store valuable jewellery securely in a safe.
- Choose your insurance provider and broker carefully, and ensure they understand fine jewellery.
- Insure jewellery as specified items under your household policy rather than under a general valuables section.
Questions to ask your insurance broker
- Can my jewellery be insured at break-up or estate value if that better reflects what the item is worth to me?
- Is my jewellery covered against accidental damage?
- Am I covered for the full insured value in the event of loss?
- Will I be able to replace a lost item with one of comparable quality at a jeweller of my choice?