Contents insurance claim

TerminallyPerplexed

I've recently lost most of my mother's jewellery and a couple of items of my own in a burglary. My insurance company has reimbursed me in full for a pair of earrings by a Danish designer after I got a valuation from the original retailer.

Regarding my mother's jewellery however, which ranged from 40 to nearly 100 years old, a specialist firm put a value of £4,855 on it and offered me a card to that value for 2 high street jewellers. Silversmithing is my hobby and I make most of my own jewellery, or I tend to by jewellery by young designers just starting up, so I asked if I could have the cash instead. I have been offered £3,155 and wondered whether a discount of 35% was fair in these circumstances. If it is, why was I paid the full value of the Danish earrings?

I would be very grateful for any advice from forum members.

Oscar_The_Grouch

There is a ruling by the Financial Ombudsman Service that covers this. In a nutshell, if the item can be replaced, the insurer is entitled to pay the lowest price available for the replacement. Where an item is not replaceable (ie, a specially made item, such as the earrings you mention), they have to pay the full retail replacement price.

You mention that most of your mother's jewellery ranged from 40 to 100 years old. I would be tempted to ask the insurers whether they are able to provide you with a direct replacement of antique jewellery, as if not, they should be offering you full retail value.

Finally, 35% discount is quite low for jewellery. There is a company called Butler Morton who are an independent jewellery consultant. I would usually expect their costs to be somewhere between 40% and 55% lower than retail.

TerminallyPerplexed

Many thanks Oscar for answering so quickly.

The insurance company have been quite honest about how much discount they would get if I used the replacement card and it looks from what you say about discounts that 35% is pretty fair. Only 2 of the items were 100 years old, the others were between 40 and 60 years old, and the valuations put on the two oldest items were pretty generous, so the discounted valuation of both is still roughly equivalent to the price of comparable items I've seen while wandering round the web.

All in all, the deal offered seems pretty fair, but I feel better for having checked. As the saying goes, just because you're paranoid, it doesn't mean that they're not out to get you! Hang on, do I have too many negatives in that sentence? Er, no, don't think so.

Anyway, many thanks for the advice. :T