Contents Insurance and Jewellery - 26 Aug 2009 08:25
Unlike other household contents, jewellery doesn’t depreciate in value - but the value of the money used to buy it does. This means that while you might have paid R9,000 for that diamond necklace 5 years ago, it’s worth at least R12,000 now. You should be insured for the replacement value of the item as it is today, not when you bought it.
If your insurer chose to cover it despite its high-risk, it would have had to be as a specialist item on your contents or all risks insurance. If you do not get your jewellery reappraised or re-evaluated regularly you could lose the sentimental item without any chance of replacing it for its full monetary value.
The problem with higher cost items and movable insurance is that these goods are often difficult to prove ownership of. Old documents or receipts become dated quickly, so regularly appraising the jewellery will keep your insurer up to date with the cost of the item and provide recent documents to show proof of ownership. Your claim should be processed quickly and without hassle if your documents are up to date – especially important for jewellery which, unlike a laptop, actually does go with you everywhere.
Getting it appraised by a reputable jeweler is also beneficial. It may cost more, but they will issue with a valuation certificate – similar to the one you received when you bought the item. Keep this document, with others such as your title deed, and insurance documents, in a safe place that won’t be affected by a catastrophe to your home. A safety deposit box is recommended.
Unlike other household contents, jewellery doesn’t depreciate in value - but the value of the money used to buy it does. This means that while you might have paid R9,000 for that diamond necklace 5 years ago, it’s worth at least R12,000 now. You should be insured for the replacement value of the item as it is today, not when you bought it.
If your insurer chose to cover it despite its high-risk, it would have had to be as a specialist item on your contents or all risks insurance. If you do not get your jewellery reappraised or re-evaluated regularly you could lose the sentimental item without any chance of replacing it for its full monetary value.
The problem with higher cost items and movable insurance is that these goods are often difficult to prove ownership of. Old documents or receipts become dated quickly, so regularly appraising the jewellery will keep your insurer up to date with the cost of the item and provide recent documents to show proof of ownership. Your claim should be processed quickly and without hassle if your documents are up to date – especially important for jewellery which, unlike a laptop, actually does go with you everywhere.
Getting it appraised by a reputable jeweler is also beneficial. It may cost more, but they will issue with a valuation certificate – similar to the one you received when you bought the item. Keep this document, with others such as your title deed, and insurance documents, in a safe place that won’t be affected by a catastrophe to your home. A safety deposit box is recommended.