The FOUR different Jewellery values:
Why do I need an Insurance Valuation?
If your favourite item of jewellery was ever lost, stolen or damaged beyond repair, a jewellery valuation would help provide the details you need in order to obtain a replacement. It provides a full description of the item and how it is made up and its insurance value at the time of valuation.
Every item should be listed separately. The item should be broken down into these categories:
It is also essential that you discuss with your valuer how you would replace the item as this affects the type of valuation produced. Your valuer will also confirm how often your items should be re-valued as precious metals and gemstone costs fluctuate greatly and regular valuations ensure your insurance values remain correct. We at Your Diamonds, suggest that you have your items re-evaluated at least once a year to maximum every two years.
How does a jewellery valuation help me get a satisfactory claims settlement?
Without a valuation the onus is on you to provide proof of the existence of a lost item and its value. That is why insurers ask for valuations at the start of the insurance, which speeds up the progress of any subsequent claim as they then have a full description of the jewellery.
In the case of an engagement ring it is advisable to specify the item as it will be worn out and about the immediate surroundings and safety of your home. We strongly advise that you insist that your valuation certificate is captured on you insurers system. Also ask for proof of this.
Our experience is that where an insurer hasn’t requested a valuation at the outset, the claims process is more complicated as both establishing what has been lost and its value have to be calculated without the item or supporting documentation. In this case insurers often use Claims management specialists to try to ascertain the value of lost jewellery and this can lead to an unsatisfactory settlement being offered in lieu of the law of averages.
You also 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. Replacing an unusual or antique is often times impossible as it may have been a one-of-a-kind item. New Replacement Value will apply to this type of item.
When and where should I get my Valuation?
You should always, without exception, get a Valuation certificate with any new piece of jewellery. The onus is on you as customer to insist on one.
It is also vital to get family heirlooms valuated. Many people inherit jewellery that are passed down through generations and having the piece valued will determine if you are sitting with much more than just the story attached to the jewellery piece.
The Valuation process is not a case of simply looking at an item and guessing a price but a complex process that uses specialised equipment and requires a high level of expertise to determine the quality and value of the jewellery item. Because of this complex process, your jeweller will ask that you book an appointment at their offices as the equipment needed will be at their place of business.
Try to get all your retail store jewellery evaluated by the same jeweller that manufactures custom items for you. We reason that getting a fair valuation on all your items will impact on your monthly premium. Over evaluated items can be costly on your premium.
Some insurers will send you to a jeweller of their choice rather than let you use the original supplier or your preferred jeweller to g et a second opinion. We recommend you look carefully at your home insurance policy to find out how your insurers would deal with a loss of jewellery.