Avoid underinsuring your jewellery

Alexander Forbes Insurance (AFI) says regular valuations of insured jewellery should be made particularly in the face of the weakening of the rand.

According to Gari Dombo, the MD of AFI, the weakening of the rand could have an impact on the replacement value of jewellery, one of the most sentimental and valuable items anyone can own.

Dombo said insured parties should assess the impact the weakening rand has on the replacement value of their jewellery in the event of a loss, by performing regular valuations.

He says one of the recommended actions to counteract the risk of underinsuring valuables is to obtain an updated certificate from a local jewellery store; which includes details such as size, weight, cut, dimensions, clarity, settings and types of gems and a photograph of the article which will assist in recreating the article in the event of a loss.

Dombo gives the example of a client whose stolen engagement ring was replaced at a lower value than it was purchased for because it had not been revalued. He says such incidences highlight the need for those who own jewellery to have regular valuations to avoid the potential financial loss in the event of them losing their items.

”The weakening rand clearly drives up the cost of jewellery and it is therefore important to be aware of the impact the fluctuation in the rand has on the value of jewellery,” Dombo says.

Dombo said that it is in clients’ best interests to make their insurance firm aware of any revaluations conducted on their jewellery and to keep certificates and photographs in a different place to your jewellery as it will not help if the certificate and/or photograph are stolen with the item, unless your insurance company has a copy.

"The bottom line is to safeguard your ability to replace your valuables by continuously assessing your jewellery and making sure you have adequate insurance in place,” concludes Dombo.