Jewellery Valuations - Why they are important to ensure your insurance is on the right basis.

Why do I need a valuation?

If your favourite item of jewellery was ever lost, stolen or damaged beyond repair, a 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.

It is also essential that you discuss with your valuer how you would replace the item as this affects the type of valuation produced. For example, a new item from a chain store would be based on the New Replacement Value (NRV) whereas an older or antique item’s value could be based on the Second Hand Replacement Value (SHRV) or Antique Replacement Value (ARV).

Your valuer will also confirm how often your items should be revalued as precious metals and gemstone costs fluctuate greatly and regular valuations ensure your insurance values remain correct.

How does a 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 we ask for valuations at the start of the insurance, which speeds up the progress of any subsequent claim as we have a full description of the jewellery. 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.

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.

Where should I get my Valuation?

You should approach your jeweller or an independent valuer. On the website of the National Association of Jewellers Institute of Registered Valuers (www.jewelleryvaluers.org) you will find useful information on valuations, together with details of the UK’s most respected jewellery valuers.

How will insurers settle a claim?

Some insurers will send you to a jeweller of their choice rather than let you use the original supplier or your preferred jeweller. We recommend you look carefully at your home insurance policy to find out how your insurers would deal with a loss of jewellery.

Who should I speak to find out about how a valuation will affect my insurance?

Simply ring any member of the March Insurance Solutions team on 01822 855 555 and they will take you through any queries you may have.