Festive Gift Valuation is Worth Its Weight in Gold

The most wonderful time of the year has just passed us and many people received beautiful new sparkly items, which is very easy to forget to inform your insurance company of your new gifts or indeed big purchases.


Follow this advice from our Private Client Manager, Emma Ragsdale, to make sure you don’t lose out, should the value of the piece increase.


  1. Keep your receipts


When buying new stones, gold or platinum, it is important to keep your receipts in a safe place to ensure you can prove the value of the item at the time of purchase. It may be worth also photocopying your receipt and keeping it separate from the original. It will be important for your insurance company to know the true value of your item; any piece over around £2,000 will need to be declared and specified on your policy to be adequately covered. (This amount may vary dependent on your insurer).


  1. Regular Valuations


Once you have notified your insurer of the new piece of jewellery, it is extremely important to keep on top of the value of the piece. We recommend getting any expensive items re-valued every three years to ensure you are not losing out should it be lost or stolen. The majority of high street jewellers provide a reasonably priced valuation service priced per item, together with a certificate to present to your insurer. Remember – if a piece was valued at £3,000 five years ago for example, and you have not informed your insurer of its most current value, you will only receive £3,000 in the event of it being lost or stolen, even if it is now worth much more.


  1. Be Aware of Market Fluctuations


The price of gold has increased tenfold over the past ten years and markets are constantly fluctuating, meaning the value of your jewellery changes over time. Other factors such as political instability in gold mining countries, fashion trends, inflation and government reserve levels all impact the value of gold and jewellery. Although a lot of policy premiums increase in line with inflation, the chances are that the value of your jewels may have gone above that level. Follow our point above about regular valuations every three years and remember to inform your insurer should the value increase. Be aware that many insurers or brokers charge an admin fee for a mid-term change but Cowens do not; your premium will just increase on a pro-rata basis until your renewal date.


  1. Bear in Mind Special Edition Pieces


For that extra special touch at Christmas, many people may opt for a special edition or commemorative piece such as a watch. Of course, the rarity of the piece means the value may drastically increase with time as demand for the item grows, making the need for regular valuations even more essential.


If you have any questions or would like some expert advice on how to keep your valuable items safe this festive period, please contact our Private Client team on info@cowensgroup.co.uk.