Insurance. Nobody likes it, but everybody needs it. Most of us have household insurance and assume it covers everything we have. It's VERY important to ensure you are properly covered for the risks that apply and make sure any valuations are up to date.
I am not an insurance guru, broker or loss adjuster by trade, but sadly I deal with lots of insurance claims for lost or stolen items, with a definite rise in stolen items. If you haven't had your watch and jewellery items valued in the past 2 years, you could find you are grossly under-insured.
What does this mean when you have a claim? Most policies have a per article limit, other terms are used for this but it basically means any item that would be over this amount needs to be valued and specified. A higher premium would need to be paid, but in the event of a claim there should be fewer problems. If an item is not listed separately and its value is higher than the per article limit, the insurance company would pay out or not at their own discretion.
If an item was valued at £2000 but you were covered to £1000, they may pay out £1000 or nothing at all, it's up to them. Some insurance companies are great to deal with and realise people can get caught out and will pay a higher amount. If you arm them in this way, be prepared to have a claim refused.
Prices are generally high in the UK at the moment. Gold prices are high due to people investing this way because of the insecurity of shares. The sterling exchange rate is low, most commodities (diamonds, stones, metals etc.) are traded in US Dollars. Products made abroad have had price increases due to exchange rates (Swiss watches) There are a few other reasons too. It is a very easy time to get caught out.
What do you do? Consult with your local valuer, through a jewellers or direct, and discuss what you need. It is important that the valuer sees these articles "in the flesh" so to speak. They can then advise you which items are likely to require valuation. Once the valuation is completed, submit a copy to your insurance company, they will advise you of the increase to your premium, pay it and hey presto you're covered! Simple (ish).
I realise it costs money to get a valuation. But a valuation from a reliable and respected source is worth its weight in gold, if you'll excuse the pun. If something bad happens, but you can make that £2000 claim, its paid for itself! If you applied this penny pinching logic to everything you wouldn't have bothered with insurance in the first place.
How do you find a reliable source? There is an organization in the UK that most reputable valuers belong to. The Institute of Registered Valuers. Whereas I don't totally agree with all of their guidelines, generally they hit the mark. This is not to say that a non-member is no good as the valuer I work with isn't an IRV member, but he is very good. You may have a local jewellers that has a good reputation, try them.
There are plenty of rogues out there, so be careful. My attention was recently drawn to a website offering valuations cheaply, without seeing the items! I really wouldn't want to be trying to help someone with their claim if this was their supporting documentation! Surely this is impossible without a very strong psychic connection. Daft! You get what you pay for!
If anyone needs help in finding a valuer locally I may be able to point you in the right direction, get in touch. Please think about your own situation carefully. If your policy is index linked it may be lagging behind. Index linking can work against you the other way around also, meaning some items are over-insured and the insurance company won't pay you more than it is "worth", so check this every now and again.
Take care,
Damian
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