Advice on Insurance
I thought I’d broach the subject of insurance – most of you are probably very clear about your policies but, from what I’ve seen lately, there is some confusion, and many differences in the ways insurance companies handle claims.
Anyone making a claim is usually doing so after a distressing occurrence, like a fire or a burglary, and the lost jewellery is often of as much sentimental value as monetary. The stress of the procedure can be reduced a little if you know your policy and are aware of the requirements of the insurance company before you make a claim. I thought a jeweller’s point of view on how claims work might be of interest. If not, stop reading now.
First of all, it may be a good idea to cast your eyes over your policy and check the following:
Under what circumstances are you entitled to make a claim? Check the “exclusion” clauses.
In the event of a claim, does your insurance company pay out or replace at new value or indemnity? (Indemnity value is the value of your jewellery after any wear and tear has been taken into account.)
Check the value above which items must be specified – this varies from company to company, and policy to policy. Have you had jewellery over this amount valued properly by a registered valuer and specified? If you haven’t, you risk, in the event of a claim, only being paid an amount equivalent to the highest non-specified amount allowed.
If you have “specified items” listed on your policy, you will probably find that you are paying more in premiums to cover these. Will your insurance company pay out on the full value of these items? Make sure that your valuations are up to date.
It is becoming more and more common for insurance companies to require proof of ownership – something which can be quite difficult if you don’t think of it in advance! It is a good idea to keep all your invoices for the jewellery you buy. If you’re given jewellery as a gift, keep a list, with a description, and give a copy to your insurance company to file – not as specified items, just for the record. If you can, try and photograph your favourite pieces.
If you have many good pieces and no receipts, try to keep an inventory of them, with a copy filed with your insurance company. This doesn’t require values, but does require a very detailed description, including any maker’s and assay marks on the jewellery.
If you are in the unhappy position of having to make a claim, there is a fairly well defined procedure to follow:
- Make a list of the missing items, as accurately as you can. If you have no idea of the values involved, leave them out – that’s for someone with more expertise to work out.
- File your claim with your insurance company. They will probably nominate a jeweller to assist with an “after-loss assessment of value” of the items. Most insurance companies will nominate a jeweller with a good level of knowledge about your particular style and type of jewellery, but some companies will send you where they feel they can get the best deal. This may work in your favour too, but not always. If you’re unhappy with the choice, discuss it with your insurance company and try to come to a better arrangement with them.
- Make a time to meet with the jeweller – make sure he or she is certificated to do the job. Take with you all the information you have available about the lost items. The completed assessment will probably be sent direct to the insurance company but you can request a copy.
If the insurance company accepts the claim there are various ways to settle. Most will offer replacement of the lost jewellery at either new or indemnity value, depending on your policy. Check to make sure that their indemnity value is the same as the jeweller’s assessment. If you are offered cash it should normally be equivalent to the indemnity value. If the offer is less, check your policy as this possibility should have been written in when you made the original contract. If it isn’t written into your policy you do not have to accept the offer.
I hope this is of some help.