WHY DO I NEED A VALUATION?
Items of jewellery are precious and need insurance to protect them, but f equal importance is a professional valuation detailing the pieces and confirming how their value has been determined.It is essential that you discuss with your valuer how you would replace your items if they were to be lost as it is fundamental to the type of valuation produced.
For example a new item from a chain store would be based on the New Replacement Value (NRV) whereas a second hand or antique item’s value would depend on where it was b ought and how it would be replaced. Here a Second Hand Replacement Value (SHRV) would be more appropriate.
Your valuer will also confirm how often your items should be revalued. Precious metals and gemstone costs fluctuate greatly and regular valuations ensure your insurance values are correct.
WHY DO MY INSURERS NEED A VALUATION?
In the event of loss, the onus is on the insured to prove they had the items for which they are making a claim. Valuations establish that you had the pieces at the time of the valuation and their correct replacement value for insurance purposes. Many valuers do not ask for valuations below an agreed value but our advice would be to obtain valuations for all significant items. Smaller pieces can be grouped together and an overall value allocated. In the absence of a valuation insurers often use Claims Management specialists to try to ascertain the value of jewellery after it has gone, an unsatisfactory process know as post-loss valuation.
You need to make sure your insurer understands the basis of the valuation otherwise they will assume it is New Replacement Value (NRV) which could complicate a claim for an unusual or antique item.
If some of your items are kept in the Bank or a home safe at all times make sure your insurers are aware as this should reduce the premium you will be asked to pay.
WHERE SHOULD I GET MY VALUATION?
W Bruford works with a valuer who is accredited with the National Association of Goldsmiths. Our valuer will provide your valuations with a folder containing a full description of the item and a date of manufacture if hallmarked. We also supply a photograph of each item and copies for your insurance company. We have a probate valuation service and work with solicitors in the area for this purpose when asked.
You can also go to the website of the National Association of Goldsmiths Institute of Registered Valuers (www.jewelleryvaluers.org) where you will find useful information on valuations, together with details of the UK’s most respected jewellery valuers.
HOW WILL INSURERS SETTLE A CLAIM?
This varies, but some will send you (often via a Claims Management Company) to a jeweller of their choice rather than let you use the original supplier, or your preferred jeweller. We recommend you look carefully at your home insurance policy to find out how your insurers would deal with a loss of jewellery.
The Financial Ombudsman Service has laid down guidelines dealing with the way jewellery claims are settled. In simple terms as long as the insurer has made it plain in the literature how they would settle a loss and they can achieve a like for like replacement they can dictate where an item is replaced. In many cases, however, where hand crafted or antique items are involved the policyholder should be able to insist that the items are replaced accordingly.
This is why it is essential that you appreciate the basis upon which your item has been valued and equally importantly how your insurer would wish to replace it so check now to ensure you are not caught out.
WHERE CAN I GET ADVICE ON INSURANCES FOR MY JEWELLERY?
You should speak to your current insurance provider as suggested above to ascertain how they insure and more importantly how they would settle a claim for an item of jewellery.
You can also contact T H March, the appointed insurance brokers to the National Association of Goldsmiths, who can offer over 125 years of experience in arranging insurances for the jewellery trade and their customers.
If you have any questions regarding valuations please call us on 01323 725452, email us firstname.lastname@example.org or visit us at 11-13 Cornfield Road, Eastbourne, BN21 3NA.