Lost ring insurance question

spectator100

Hi, I have been reading lots of posts people have asked about contents insurance claims for jewellery but from what I've read most seem to be about insurance specialist not being able to replicate the item and thus offering a lower cash payment. 

I lost my wedding ring a couple of months ago the ring isn't too fancy but it also wasn't off the shelf and was custom made. 

The insurance company have accepted the claim and passed me onto another company (hallmark claim services) they have come up with a valuation and cost to replace which is far higher than multiple local jewellers have (including the original jewellery who created the ring).

To cut a long story short hallmark are saying the ring would cost £4,300 to replace and this puts me in a shortfall because the insured value was £2100 - the ring is under 2 years old and that's what it cost at the time I appreciate inflation etc would changes prices but £4300 seems crazy. 

My options are
1. £3750 voucher + £550 payment from me to have the ring replaced
2. £3750 voucher to be spent at goldsmiths on non branded jewellery
3. Cash payment of £2100

I have had 2 quotes saying the ring would cost £2,700 & £2,900 to replace and I'm awaiting a 3rd valuation. 

I have questioned my insurer why their price is so high but they just said I have to talk to hallmark who have said that's what their loss adjuster thinks and won't budge 

The whole shortfall issue seems to be solely based on their inflated valuation, I've asked hallmark for a detailed list of what spec they are proposing to produce the ring from but they just say it's based on the original invoice/pictures/detail I have given them which is the same info I have local jewellers. 

Is this normal that the insurance companies chosen company is so inflated? And does this sound like something I should be looking to raise a complaint and potentially take to the financial ombudsman 

TSx

If the Insured value is £2,100 then that is the most you will get, it is your responsibility to keep the values up to date.

It appears that the Insurer is offering you the benefit of their discount to get the ring made by their jewellery supplier (they will pay Hallmark £2,100 at the policy limit). If you think that is too high you can take the £2,100 in cash and see if you can find someone who is able to make the ring.

spectator100

Hey TSx

Thank you so much for your reply   

I appreciate its my responsibility to keep values up to date but my understanding from the national jewellers association is that its recommended to re-value items every 3 years. 

Infact Aviva says the same thing and they are my insurance company:

I cant post links but if you google aviva-urges-customers-to-protect-themselves-after-rise-in-claims-for-jewellery-theft  it should be the 1st url for a news release feb 2024: 

Underinsurance of jewellery can be an issue when customers come to claim, especially as the price of precious metals, diamonds, coloured diamonds and watches can fluctuate. Getting jewellery valued at least every three years will ensure your pieces are appropriately insured.

My understanding was the insured valuation is the price it would be to replace the item at the time of the valuation - given inflation and metal prices can change daily/weekly/monthly there is no way of knowing what the replacement value would be in 1month/3months/6months time. 

How is it possible that Aviva themselves say at least every 3 years to ensure pieces are appropriately insured but then say a ring which is 2 years old is underinsured. 

Im not trying to be argumentative with yourself or anyone im just genuinely confused by the process as i've never claimed on insurance before.   

TELLIT01

If you have a local jeweller who makes their own jewellery check with them how much they would charge to make a ring to match the original. 

DullGreyGuy

spectator100 said:

Hi, I have been reading lots of posts people have asked about contents insurance claims for jewellery but from what I've read most seem to be about insurance specialist not being able to replicate the item and thus offering a lower cash payment. 

I lost my wedding ring a couple of months ago the ring isn't too fancy but it also wasn't off the shelf and was custom made. 

The insurance company have accepted the claim and passed me onto another company (hallmark claim services) they have come up with a valuation and cost to replace which is far higher than multiple local jewellers have (including the original jewellery who created the ring).

To cut a long story short hallmark are saying the ring would cost £4,300 to replace and this puts me in a shortfall because the insured value was £2100 - the ring is under 2 years old and that's what it cost at the time I appreciate inflation etc would changes prices but £4300 seems crazy. 

My options are
1. £3750 voucher + £550 payment from me to have the ring replaced
2. £3750 voucher to be spent at goldsmiths on non branded jewellery
3. Cash payment of £2100

I have had 2 quotes saying the ring would cost £2,700 & £2,900 to replace and I'm awaiting a 3rd valuation. 

I have questioned my insurer why their price is so high but they just said I have to talk to hallmark who have said that's what their loss adjuster thinks and won't budge 

The whole shortfall issue seems to be solely based on their inflated valuation, I've asked hallmark for a detailed list of what spec they are proposing to produce the ring from but they just say it's based on the original invoice/pictures/detail I have given them which is the same info I have local jewellers. 

Is this normal that the insurance companies chosen company is so inflated? And does this sound like something I should be looking to raise a complaint and potentially take to the financial ombudsman 

The shortfall isn't just because of their price because your own quotes are well above the insured value. 

Given you say the original was custom made have you gone back to them about the cost of a replacement?

Have you looked at Goldsmiths to see if they have anything you like or is comparable? 

The problem with jewellery is that there is a vast markup applied by retailers. I dont know where you got your ring made but a ring I had made (more constructed than designed as they were off the shelf components) was about 1/3 the price of something similar in a shop. In fact when we got it revalued at a later date the person said they stock the identical mount but their wholesale price is less than what the website was charging on the day. 


If you want the near identical ring then option 1 is clearly your best option as you get it for £550 which in this day and age when you consider the average excess is a few hundred, is not a bad result. Alternatively if you want to select the crafts person yourself the option 3 plus £600 or £800 of your own money depending on which of the two quotes you preferred. 

spectator100

I've had 2 more quotes today from local family run independent jewellers that have been in business for 35 + 75 years and the quotes are: £2,225 & £2,375. 

 One of the other quotes i had of £2,900 was the son of the original jewellers who made the ring - they are over 250 miles away and his cost is higher as it includes him driving to meet us as he only works out of a workshop since closing the family shop (when the dad retired). 

I realise the best option is for me to take the cash and go with the option of 2,225 or 2,375 - they have both shown me the replacement sapphire they would use in my ring and its identical. 

But this still begs the questions:
1. why does the insurance company say it would cost £4,300 to replace - is this a fair assessment or are they deliberately inflating the price so high that the the customer has to make a contribution and if so should this be allowed?

2. aviva's ownn website says that Jewellery should be re-valued every 3 years to allow for inflation and price fluctuations - given the ring is 2 years old its within Aviva's time limit shouldn't this mean that an inflation increase to £2,100 -> ~£2,400  should be covered? 

This now makes me question my wifes wedding and engagement ring both are valued at the price 2 years ago but due to cost increases if anything happened to them there would be another shorfall - should we be insuring them for the cost they are worth + a % increase to predict inflationary pressures

TELLIT01

I wouldn't try to work out why the insurer comes up with the price they do.  It's irrelevant if you are taking the figure are offered.

I lost my wedding ring but it was over 40 years old and I didn't have a clue what it cost.  I described it to the insurer who passed the claim to a manufacturing jeweller to recreate.  I was surprised as I had seen a virtually identical ring in a High Street jeweller.  I can only assume they chose the option they did because I said it was purchased from a jeweller in Hatton Gardens, which it was.  Long story short, the ring I saw in the High Street jewellers was about £500.  The valuation with the ring I received was £2.5k and the new ring is 18 carat gold despite me stating the old ring was 9 carat.  I didn't complain.

DullGreyGuy

spectator100 said:

But this still begs the questions:
1. why does the insurance company say it would cost £4,300 to replace - is this a fair assessment or are they deliberately inflating the price so high that the the customer has to make a contribution and if so should this be allowed?

2. aviva's ownn website says that Jewellery should be re-valued every 3 years to allow for inflation and price fluctuations - given the ring is 2 years old its within Aviva's time limit shouldn't this mean that an inflation increase to £2,100 -> ~£2,400  should be covered? 

This now makes me question my wifes wedding and engagement ring both are valued at the price 2 years ago but due to cost increases if anything happened to them there would be another shorfall - should we be insuring them for the cost they are worth + a % increase to predict inflationary pressures

1. Things are generally valued at retail price and retailers charge too much...

Goldsmiths have a 1ct H/SI1 solitaire certified in platinum for £10,500. BlueNile have the identical band for £795, their H/SI1 diamonds at 0.98-1.02 range from £2,087 to £3,747 assuming the cut is good or very good. So Goldsmiths are selling it at somewhere between 2.5-3x the price and clearly BlueNile are making a profit at the price they are selling at. 

When you get a valuation done it will give you a retail price, thats the price to insure it at. 


2. Avivas website says to revalue them at least every three years. This would mean more often is better but you were heading for the bare minimum they recommend. Valuations are expensive though, many charge a percentage of the value for their work. Personally look at what's available retail and add a small buffer or look to the likes of M&S Premier (underwritten by Aiviva) who cover items up to £15,000 without needing to be declared so should give good headroom

spectator100

I realise this is an old post now i forgot to update it and whilst it probably wont help anyone but i always find it slightly frustrating when a topic just ends without a conclusion. 

I ended up taking the cash payment of £2,100 and went to a local family jewellers they sourced a number of different sapphires for me to look at and find the one i liked the most, the ring they have made is actually heavier than my original one was and they charged me £2,000. its 99% identical - only the sapphire is ever so slightly different but i never expected that to be matched 100%. 

All in all it was a painful process but I must admit there is a high level of satisfaction in knowing the insurance company lost out after their ridiculous valuation, seem on this occasion their greed has actually left me £100 better off