Rand weakness impacts insurance value of jewellery

Gari Dombo, MD of Alexander Forbes Insurance.

Continued depreciation in the value of the rand has a significant impact on the replacement value of jewellery warns Gari Dombo, MD of Alexander Forbes Insurance.

Dombo recommends that in order to reduce the risk of underinsuring ones jewellery, South Africans should obtain an updated certificate from a local jeweller; 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. 

“Jewellery is one of the most sentimental and valuable items anyone can own and therefore it is important to revalue ones jewellery regularly to avoid the potential financial loss in the event of losing one’s items,” says Dombo.

He adds that the easiest way to prove the value of your jewellery following loss is to produce a valuation certificate following loss from a reputable valuer.

Dombo explains that the weakening rand drives up the cost of jewellery since prices of gold and precious stones are linked to the US dollar. It is important to be aware of the impact that currency fluctuation has on the value of jewellery.

“The bottom line is you should continuously assess your jewellery values to make sure you have adequate insurance in place,” concludes Dombo.