A (hopefully) simple question...

owen22

Hi,

(I originally put this post in the 'jewellery insurance thread' but it's more of a general insurance query...)

I've never had any kind of insurance policy before but now need to insure an engagement ring.

The problem is the ring we have bought is an antique. If it ever needed to be replaced we would like to option to have a replica made which would probably cost more than what I initially paid for it.

When obtaining a quote obviously I can put in any value for the item I want (taking into account the cost to get a replica made) and this will be reflected in the price I'm being quoted. On making a claim however, would the insurance company ask for proof of what I paid for it (and therefore only pay out this lower amount)?

This is probably a really dumb question but hopefully that makes it easy to answer!

Thanks.

Astaroth

The best option is to get a professional valuation for the ring, these are typically X% of the ring's value with a minimum of circa £50.

If you only have a receipt and sellers description they can only really go on the receipt value as anyone can claim a ring is £5,000 with a 1 carat flawless stone when selling it.

You will also need proof of ownership so photos of your fianc!e wearing it etc will be benefitial to you rather than relying on the receipt.

dogbot

As astaroth says, get the ring valued and keep documentation. I would also add to that that it would be a good idea to photograph the ring from a couple of angles, and ideas with you holding it.

Store copies of the photo's online somewhere.

owen22

Thanks for the advice guys.

Yes, we will be taking a lot of photos from every conceivable angle... if for no other reason than to ensure a replica was as acurate as possible.

It probably sounds stupid but I really wanted to avoid getting it valued in case I discover we've been ripped off! I guess I'll have to bite the bullet!!

Thanks again.

Astaroth

It is the risk..... have to admit that when I had my fianc!e's ring engraved and valued I was concerned that the jewellers would switch the main stone for a fake (to the extent of spending time with a powerful lens to ensure the laser inscription still matched that on the certificate after getting back)

Oscar_The_Grouch

dogbot wrote: »

Store copies of the photo's online somewhere.

Make sure you scan the valuation too - if your house burns down, the valuation isn't worth the paper it's written on once that's gone up in smoke too.

It's worth scanning all your important documents (including your passport, birth certificate, exam certs, etc) and shoving copies on a CD. Give the CD to your parents and you've got a free off line storage of your documents too!!

gem_man

Hi Owen22

I would guard against having the ring valued on a Facsimile Value basis (i.e. the replacement cost based on a replica being made). This would increase your insurance premium significantly. As you quite rightly pointed out, the cost of doing this would be many times the price that you paid for the item.

I would suggest that you have it professionally valued on a Secondhand Replacement Value basis which basically means that the ascribed value relates to the cost of replacing a similar item, of similar age, same condition and containing workmanship, quality of diamonds/gemstones etc of equal merit.

To comment on some of the other points that have been raised:
If the valuation is carried out by a specialist it would contain quality images from various angles, some, like myself, also photgraph under magnification key areas of the item that deserve "mention".

Most jewellery valuers keep records for donkey's years after the work has been carried out (but storing a scanned copy yourself is probably a sensible move)

To add to Astaroth's comment regarding fees, thankfully, charging a percentage of the value is now rapidly becoming a thing of the past. Nearly all Independent Jewellery Valuers now charge a fixed fee or an hourly rate. To be frank, I would avoid anyone charging a percentage fee, particularly if you decide to proceed with a Facsimile Replacement valuation.

Hope this helps

Adrian

Astaroth

gem_man wrote: »

Nearly all Independent Jewellery Valuers now charge a fixed fee or an hourly rate.

When did this "happen"? I looked around many jewellers in the City and Bromley to value the misses engagement ring and all wanted to charge a proportion of the value with a minimum of circa £50.

I could understand the rational for a big box of stuff but for a single piece a set price may have ment I went forward with it. How long can it take to evaluate a single certified stone, 2 none certified stones that are only circa .15c and a simple tiffiny-esque mount? I am so in the wrong line of business given the estimated cost based on the valuation from the retailer

gem_man

Hi Astaroth, It has been moving that way for a while now, I have been one of the folk that have been pushing for changes.

Certainly, some retailers are still charging a percentage, probably more for "don't like change" reasons rather than any ethical issues.

You will notice that I said "Independent Valuers". These are Appraisers that purely value jewellery, they do not buy or sell at all.

Increasingly, retailers are using Independents to value on their behalf.

Regarding the enormous amounts of money we are all making ......
Like most professions Astaroth, to do things properly often involves a lot more skill, time and responsibility than is first apparent.

Kind regards
Adrian

Astaroth

I am sure it does Adrian, I wasn't truly belittling the skill or training necessary.... I am well aware that people say the same about business consultants when they hear our day rate