Protect your valuables
11 Jun 2013
Whether you have received a watch or a piece of jewellery as a gift, or have simply treated yourself, if it is a quality item then you need to make sure you have the right insurance cover. While it's common for people to have their valuables added to a policy at point of purchase, many neglect to review how much those valuables are worth on an ongoing basis - and this can lead to problems if they are lost, stolen or damaged.
With recent increases in the price of diamonds, precious metals and watches, it's possible that certain items have gone up in value, so it's crucial to make sure that insurance policies provide enough cover. I recently spoke to Kelly Sharp, Claims Service Account Manager at Aurum Holdings, the largest prestige and luxury jewellers in the UK, to get an understanding of what going on in the market and how it impacts on insurance requirements. He/she gave some very interesting insights.
To begin with, as most people are aware, the average price of gold has increased steadily since 2008 and even overtook the price of platinum in 2012. Despite a sharp drop in recent months, many experts predict that is will continue to rise for the foreseeable future. This, along with increases in other precious metals (see page 34) can have a direct impact on the value of jewellery and other items. So, any that have not been re-valued in the past five years may well be underinsured, leaving replacement claims with a potential shortfall.
It's a similar story with the price of diamonds, which have also steadily increased over the last three years. As with precious metals, experts seem to agree that the price of both rough and polished diamonds is expected to rise again further this year, which means diamond jewellery and diamond-set watches are going to increase in value.
A further point to consider is that jewellery or watches that contain both precious metals and diamonds, such as a single-stone gold solitaire ring, for instance, will increase in line with the price ofboth'commodities', resulting in a higher risk of underinsurance. This, combined with the increase in demand for single stone rings, means that we foresee claims increasing at higher values.
When considering the value of a jewellery collection, watches are sometimes overlooked which, in light of increases seen in the retail value of certain brands, could be a big mistake. According to Aurum, data shows that top-level luxury brands, such as Patek Philippe, Audemars Piguet, Vacheron Constantin, Rolex, Breguet and A. Lange & Söhne are increasing in value. And then you have to look at mid-range brands such as Omega, which in particular has performed well thanks, at least in part, to the Olympics and the release of the James Bond film,Skyfall, which have greatly boosted brand awareness and allowed Omega to gain market share.
When insuring your valuables, it's important to choose an experienced broker who understands your portfolio of jewellery and watches and can find you the right insurance product to adequately protect your investment. Many products on the market are not designed to cater for jewellery and watch collections, which can potentially lead to a shortfall in cover.
Once a broker has found the right insurance product, it is important to ensure that valuations are kept up to date. This allows for peace of mind that claims will be sufficiently compensated in the event of a loss.
Rossborough has a specialist Private Client team dedicated to offering premium quality policies and the highest levels of service. They strive to offer the best value policies available, recommending only the most comprehensive and easy-to-understand products, and never compromising on quality.
After an assessment of your needs, our Private Clients team can arrange a policy, which will offer superior cover for you and your valuable possessions. Our products include:
- Home, contents and personal possessions
- Art, antiques and jewellery
- Holiday homes, UK and overseas
- Family and business travel
- Family fleets
- High value and classic cars
- Yachts and aviation
To discuss your requirements, please contact our Jersey Private Clients Manager Mark Vautier on 01534 500614 or mvautier@Rossboroughgroup.co.uk or in Guernsey, Laura Robert on 01481 241539 or firstname.lastname@example.org.