Jewellery and Watches

When did you last have your jewellery valued?

01/03/2012 in Jewellery and Watches

One of our insurer partners recently provided me with three examples of how much jewellery has increased over the last few years and it is quite staggering.

1. A 6.10ct diamond ring, valued in 2004 at £48,000, has been re-valued at a staggering £137,650, a 187% increase.
2. A 6.15ct diamond pendant necklace, originally valued in 2005 at £70,000, has been re-valued at £156,000, a 123% increase.
3. Another case saw an item of jewellery valued by a NAG jeweller in 2007 at £29,950. The policyholder has just had this item re-valued and it is now valued at £72,000, that`s a 140% increase in 5 years!

The valuation may not necessarily cost a small fortune to arrange, but could save a significant sum if, in the event of a loss, jewellery items do not have the up to date documents.

Please contact Jeremy Edwards, Head of Private Clients for more information on valuations and how best to insure jewellery items. Some policies even provide some protection against these unforeseen increases if there are valuations within the last three years.

Safe ratings – How insurers assess what type of safe is suitable

11/01/2012 in High Value Homes, Jewellery and Watches

The price of gold, diamonds and precious metals has risen dramatically over the last two to three years; general estimates suggest as much as 50-60%. As a result, the cost of jewellery has also risen by similar percentages. Sadly this is only highlighted to people when a loss occurs. Insurers will require either an estimate to repair or replace the item lost or damaged or use one of their recommended companies. It is then that realisation hits that the cost of replacing the treasured item has doubled and the sum insured is not sufficient.

The first recommendation is to have the jewellery valued every two to three years. At Macbeths, we have access to a number of reputable companies that can provide up to date valuations at a reasonable cost. This will ensure that there is no under insurance and that clients will be fully reimbursed following a loss.

In addition to the under insurance aspect, an increase in values can also create significant changes to household insurance’s, not only in premiums but also in any terms applied. Many insurers are asking for the installation of floor safes, the size of safe requested is all based on the total jewellery value within household. Historically ‘Cash Rating’ is the term used for safes that are strong enough to be able to hold cash, but in terms of jewellery the ratio is 10 to 1, so for example £80,000 of jewellery would see an insurer requesting a £8,000 cash rated safe to be fitted.

The second recommendation is to install a floor safe, anchored, of sufficient cash rating that it can protect your jewellery. It is also prudent to plan ahead so that if your jewellery collection is likely to increase over a number of years, install higher cash rated safes to be able to cater for the higher amount.

If your insurer asks you to install a Euro grade safe, what does this mean in terms of cash rating?

Below is a list of the cash rated safes and what they would become in Grades under the European grading system:

Grade 0 – £6,000 cash rating

Grade 1 – £10,000 cash rating

Grade 2 – £17,500 cash rating

Grade 3 – £35,000 cash rating

Grade 4 – £60,000 cash rating

Grade 5 – £100,000 cash rating

Grade 6 – £150,000 cash rating

For further information about safes and the insurance implications as well as how to insure jewelley, please contact Carl Sharp on 01189 165487 or complete one of our enquiry forms.

Mum’s the word – Insurance for actors & celebrities

24/10/2011 in Fine Art and Antiques, High Value Homes, Jewellery and Watches, Private Clients

Macbeth insures actors & celebrities

Gold Rush!

08/09/2011 in Jewellery and Watches

All that glistens is gold

The recent down turn in the stock market is one of the contributing  factors that has seen unprecedented rises in the value of precious metals. Silver is now worth about nine times more than it was ten years ago and the price of gold has risen by 50% in the last year alone.

In a recent article for BBC news Phillip Diaper the manager of London’s oldest pawnbroker, Sutton & Robertsons commented “The price of gold has run away. A common garden gate bracelet ten years ago would have melted for £65; today it is worth £350.

The knock on effect is that some 6 million householders could be underinsured and claimants could be missing out on full pay-outs.

We recommend that you have your jewellery re-valued every 2-3 years and we can recommend highly reputable valuers to our clients.

At Macbeth we are always happy to provide advice about insuring high value jewellery.  See our blog about how to insure jewellery and watches or call Paul Macbeth on 0118 9452944.

Love is in the air

15/02/2011 in Jewellery and Watches, Private Clients

So, Valentine’s Day has been and gone, but what should you do to ensure that your precious piece of jewellery is properly protected?

Here are our 6 top tips:

1)      Don’t forget to notify your broker or insurers of any new acquisitions

2)      Ensure that you get a professional valuation at least every three years to ensure that your items is are not under-insured

3)      For safekeeping provide you broker with a copy of valuations and also take photographs of expensive items

4)      Have the clasps and settings of major items checked every year

5)      Have your jewellery cleaned professionally to avoid damage which could result in a reduction in value

6)      If possible keep items that are not being worn in a suitable safe

For more information about how to protect jewellery contact Paul Macbeth on 0118 9452944 or complete one of our enquiry forms.

How to Insure your Jewellery & Watches

23/11/2010 in Jewellery and Watches

Whether you already have expensive jewellery or are about to acquire some; it’s important that you have the correct level of cover.

Be confident about your cover
First ask yourself if you want or need specialist cover? If the value of your jewellery is modest (basically less than £5,000) perhaps the limited cover provided by a basic, standard policy will be adequate.

However, when high values are involved, more specialist insurance cover should be bought.
The important step is to discuss the coverage options with your broker. Discussing the cover will allow you to understand exactly what you are covered for and how a loss will be paid. Does it cover mysterious disappearance (when you know the property is gone, but can’t pinpoint when and how the property was lost) and other causes of loss? Do you need to specify any item’s on the policy schedule or are they automatically insured? Is cover automatically provided outside the UK? 

Establishing the correct value
Answering this question may, initially, be quite simple. If the jewellery has just been purchased, the receipt or certificate from the retailer will form the basis of establishing the insured value.
Obtaining a valuation that affirms your jewellery’s current value is an excellent way to ensure that your property is properly protected. Insurers will generally request that expensive item’s are valued every 2 years to ensure that the insured value remains accurate.

Of course, it’s prudent to be sure that the valuation is from a competent valuer and it’s your responsibility to find out a valuer’s competency. There are several professional jewellery associations such as the National Association of Goldsmiths that can give you information on valuers and appraising methods. And, of course, talk to a potential valuer to see if they know their stuff and how willing they are to explain their work to you. All of these items are important, especially since you have to pay a fee for a valuer’s services. 

How to make a claim
So, you’ve arranged quality insurance cover with an exceptional insurer but what happens in the event of a claim?

Well, high net worth insurer’s will provide you with complete flexibility over how to settle your claim and you can expect matters to be resolved extremely quickly. In the event of you suffering a loss, most standard home insurance providers will push you into using one of their approved suppliers for the simple reason that they have negotiated large discounts. In comparison, high net worth insurer’s will allow you to use your own chosen company to repair or replace damaged or lost item’s which is vital if you have had bespoke jewellery designed and made. In some circumstances, insurers will also consider providing cash settlements without deduction.

Macbeth Premier Clients have specialised in high value home insurance for over 15 years and have a wealth of experience. We will provide you with an exceptional level of personal service and a dedicated account manager will handle your policy from inception to renewal including a complete claim service so you can just relax and leave matters to us.

Changing insurance brokers is a simple process and provides you with peace of mind that you are receiving the best deal, both in terms of cover and price. If you would like to obtain a quotation from Macbeth, please telephone Paul Macbeth ACII, Managing Director on 0118 945 2944 or emailpaul.macbeth@macbeths.co.uk

Why is it so difficult to insure single items?

18/10/2010 in Insurance Industry News, Jewellery and Watches

Insuring single items of high value jewellery can be a real problem. Most ‘standard’ home insurance providers are unlikely to cover items of jewellery worth over £10,000.

The reason for this is that insurance companies like risks that are balanced and, if the level of jewellery is disproportionate to the general contents sum insured, it will fall outside the acceptance criteria of most insurers.

So if you have been to Graff, De Beers or Tiffany & Co and have purchased an expensive item, what do you do to ensure you have the right type of cover for a realistic price?

Macbeth have a number of solutions. If you would like more details about jewellery insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk or visit www.macbeths.co.uk

Soaring Diamond Prices prompt insurance concerns

15/10/2010 in Insurance Industry News, Jewellery and Watches

With diamond prices are increasing by as much as 43% over the last six months, they are rapidly becoming an attractive alternative to the volatile stock market, as long as they are adequately insured.

Over the last year, the value of large diamonds has increased by an average of 30%, while the price of platinum has almost doubled, far outstripping general price inflation.

But insurance broker Macbeth Premier Clients says many jewellery collectors risk underinsurance in the wake of spiralling precious metal and diamond prices.

Paul Macbeth at Macbeth Premier Clients said ‘It is the responsibility of the policy holder, not the insurer, to ensure that their sums insured adequately represent the cost of replacing items. If they do not, in the event of a claim, they will receive no more than the sum insured or the single article limit, leaving them out of pocket’.

He said that the insurers generally apply index linking to insurance policies based on the general index of retail prices, rather than an index which specifically tracks changes in the cost of jewellery. While the sum insured for specified items will increase in line with inflation, it does not necessarily mean that it will keep pace with increases in the jewellery market.

Unspecified jewellery cover is also subject to index linking by insurers. Unspecified jewellery cover always contains a single article limit which can be easily exceeded if valuations are out of date.

Homes over £500K may have insurance gaps

22/03/2010 in High Value Homes, Jewellery and Watches

Hundreds of people with homes over £500,000 in Reading and the surrounding area could be leaving themselves open financially when it comes to insurance according to Reading based specialist insurance broker Macbeth.

This especially applies to people who also have contents worth over £75,000 plus jewellery and watches over £10,000.

Paul Macbeth, Managing Director of Macbeth’s said, “You can basically divide the home insurance market into two – higher value home and standard policies. They are very different in both scope and design, and in today’s market too many people do not understand there is a difference and select on price alone without realising they are leaving costly gaps in their cover.”

Higher value home insurance is designed for higher than average sums insured or for people seeking a better quality form of insurance for their homes, possessions and valuables.

Cover is restrictive in many respects and conditions will be applied. Typical limits of cover being £300,000 for buildings, £50,000 for contents and £5,000 for jewellery/watches although it may be possible to insure an additional, expensive item that exceeds the single article limit but charges to do so are usually expensive.

Paul Macbeth added, “And when it comes to claiming, the insurer’s service will generally be quite rigid with claimants being directed to the insurer’s own suppliers and repairers. There is no doubt standard insurance policies are great value for money if you have the average sums to insure. However, if you have an expensive home, contents, jewellery etc then a higher value home policy will be the most effective and competitive way to insure and avoids the tears.”

If you would like more details about high value home insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk

Jewellery Insurance – Why is it so difficult to insure single items

21/03/2010 in Jewellery and Watches

Insuring single items of high value jewellery can be a real problem. Most ‘standard’ home insurance providers are unlikely to cover items of jewellery worth over £10,000.

The reason for this is that insurance companies like risks that are balanced and, if the level of jewellery is disproportionate to the general contents sum insured, it will fall outside the acceptance criteria of most insurers.

So if you have been to Graff, De Beers or Tiffany & Co and have purchased an expensive item, what do you do to ensure you have the right type of cover for a realistic price?

Macbeth have a number of solutions. If you would like more details about jewellery insurance, please contact Paul Macbeth ACII (Managing Director) on 0118 9452 944 or paul.macbeth@macbeths.co.uk