Home Insurance grrr!!

Ginx

Good Morning

I have had my buildings and contents insurance with, what is now Santander, ever since we took out our mortgage 26 years ago! As my engagement ring exceeded £1,000 I specified it for £2,000 (price paid then), for which I pay extra each month. Unfortunately, whilst on our summer holiday this year I had my ring stolen. I contacted my insurance company to inform them of a pending claim (pending because we found out who stole the ring and it is still being investigated by the Portuguese Police!) Meanwhile, I sent in all the information my insurance company requested, including photos of the ring. They then informed me that the value of the ring was £12,500 but I could only claim the specified amount of £2,000 AND I should have my jewellery valued every year, but who in reality does this!! I was astounded, to say the least! Apparently the value of gold and diamonds has increased so much over the last few years! My question to them was well if that is the case and I have a new for old policy then why are they not replacing the ring for its full value? They said because I have specified it at £2,000!! I expressed my concerns and unhappiness about this. They then offerred me £3,333 as a good will gesture as this is the discount they can get through Goldsmiths, who is apparently the only company they deal with, no where near the true value of £12,500 is it?! So I am left with either accepting £2,000 cash value or £3,333 if I purchase through Goldsmiths! Consequently having visited Goldsmiths, the rings I looked at, which were supposed to be similar to my original ring, were no where near as nice and they apparently didn't have any others available!!! So unfortuanately, I am now left wondering about where I can go from here!!! HELP!

InsideInsurance

You admit to specifying the value as £2,000... to be blunt, why are you disappointed that they will only give you £2,000? On what grounds do you think they should pay you more than what you've been telling them it is worth?

An annual valuation is excessive but you certainly need to realise inflation exists and what cost £2,000 26 years ago is not going to still be £2,000 today especially as the news has been full of comments about the rise in value of metals and stones since the credit crunch (hence all those "sell your gold" stalls springing up everywhere). Generally a valuation every couple of years or at least looking in shop windows to find comparable items and noting their price

What sort of ring was it? A solitaire? What stone(s)? (cut, clarity, weight, colour, certified or not)?

_Andy_

Really don't understand why you're whinging about whining when the fault lies with you.

forgotmyname

Take the £2000 and take a trip to the jewellery quarter?

Kick yourself for not getting it valued every few years.

Ginx

Inside - Thanks and yes I know it was probably my fault but who in reality actually does this?! The ring was 1.5 carat, middle one being 1 carat, brilliant round cut diamonds (3 of)raised in claws, IJ in coloour and VS1 clarity.

Forgot - Thanks and yes i could kick myself now but I think this is probably what I will end up doing!

and Andy..........thanks for such positive comments but please check your grammar before posting!!!

_Andy_

Ginx wrote: »

and Andy..........thanks for such positive comments but please check your grammar before posting!!!

You have issues.

dunstonh

I know it was probably my fault but who in reality actually does this?!

Most people who have valuables of that level will get periodic valuations. You don't need to do it every year but having £12,500 piece of jewellery would have made common sense to do it say every 5 years.

People with low value items won't get valuations but they don't need to. However, ask most people with high value items and you will find they will.

Faith177

Ginx wrote: »

Inside - Thanks and yes I know it was probably my fault but who in reality actually does this?! The ring was 1.5 carat, middle one being 1 carat, brilliant round cut diamonds (3 of)raised in claws, IJ in coloour and VS1 clarity.

Forgot - Thanks and yes i could kick myself now but I think this is probably what I will end up doing!

and Andy..........thanks for such positive comments but please check your grammar before posting!!!

I do with my engagement ring and my mum does with her rings it's common sense IMHO

InsideInsurance

Ginx wrote: »

Inside - Thanks and yes I know it was probably my fault but who in reality actually does this?! The ring was 1.5 carat, middle one being 1 carat, brilliant round cut diamonds (3 of)raised in claws, IJ in coloour and VS1 clarity.

TBH, I dont think it is worth anywhere near to the £12,500 quoted.

You can buy a loose certified 1carat round cut diamond from Blue Nile for £2,500ish after cashback from Quidco. 25pt side stones are £225 each if you want them certified too but in most cases just the centre stone is. A setting in platinum is £650, gold is obviously cheaper. Total cost £3600 after cashback.

Evidently you were under insured and as has been pointed out there isnt much you can do about it but the level of under insurance is no way near as bad as it appears and you can get a replacement at a reasonable price

Depending on how they give you the Goldsmiths credit (ie gift vouchers or a personalised credit card) then it may be best to take it, sell it and use the higher cash value towards a replacement at a more cost effective location than a high street jewellers

kingstreet

Anyone remember that case a few months ago. The chap claimed for masses of stolen gold which he had badly underinsured as the price increased?

It ended up on Watchdog IIRC.

There's a thread on here. Time for a bit of digging...

kingstreet

Here it is;-

https://forums.moneysavingexpert.com/discussion/3409823

Worth a read.