What you need to know about your jewellery and insurance

When you’re purchasing a new piece of jewellery, it can be easy to get caught up in the exhilaration and not consider the less exciting parts, such as insurance. We’ve found that too many people don’t know what their insurance will and won’t cover until a loss occurs, and then it’s often too late. This is why it’s important to understand your insurance policy and any limitations or exemptions there might be, ahead of time.

WHEN SHOULD YOU ITEMISE YOUR JEWELLERY ON YOUR CONTENTS POLICY?
Every insurance company is different, so it’s best to check your policy details for insuring jewellery. Most policies will
automatically cover you for a single item of jewellery valued up to a specifc amount, e.g. $1,500. Any items of jewellery you own which are worth more than the amount stated on your policy, will need to be itemised individually.

ARE YOU COVERED FOR FULL REPLACEMENT OR INDEMNITY VALUE?
It’s essential to know if your insurance policy offers full replacement or indemnity value. Full replacement means you’ll be paid the amount that it would cost, at the present time, to replace the item/s. Indemnity value means you’ll be paid the value of the item/s at the time of the loss based on the degree of wear and tear – more of a second-hand value. The indemnity value of an insurance claim is usually signifcantly less than the value of actual replacement or repair. Ideally you want to have full replacement value on your precious jewellery.

WHAT ‘EVIDENCE’ WILL YOU NEED TO MAKE A CLAIM?
In the event of an insurance claim, you may need to prove your ownership and the value of your jewellery. To help with insurance claims should the unthinkable occur, it pays to have photographs of your jewellery and documentation stored in a safe place. Better still, make sure you have photographs of you wearing the jewellery. If you have lost your receipt or don’t have photos, we have very good records here at Showcase. Most of our stock is photographed and we can link it to the purchaser on our system. Proof of repair can prove ownership. All repairs are photographed and work done recorded. You can rely on us
as a back-up to provide your insurance company with the proof they need that your jewellery is in fact, yours.

DO I NEED TO GET MY PRECIOUS JEWELLERY ITEMS VALUED?
To make sure you are fully insured, you may need to have valuable jewellery itemised on your insurance policy. Plus, if you ever need to claim, valuations provide proof of the item’s existence and value. We can help you with this. We use an independent, qualified Gemologist to value jewellery, they give an accurate valuation and provide the documentation required by an insurance company. It is advisable to have an independent valuation undertaken every 3-5 years to keep your item insured at the right replacement value. While insurance can’t replace the sentimental value of a special jewellery piece, it does give you the next best option of repair or replacement. This peace of mind and the confidence to enjoy wearing your jewellery without
worrying about damage or loss is well worth the minor cost.

If you would like to find out more about getting a valuation for insurance purposes, call in and have a chat to one of our team.