It is time for your jewelry to be upgraded
"How often should I have my jewelry valued?" or "when should I have my jewelry upgraded?". These are two questions that I would have liked to have been asked more often. The answer to both questions is at least every two years or every time you change insurers. I will be dull. If you haven't done it for five years or more, you are likely paying too much for your insurance.
The problem is that people buy a policy and the helpful insurance company very nicely indexes the values of the insured parts. However, jewelry does not follow a consumer price index. The value of diamonds is tightly controlled by a small cartel that increases or limits the production of diamond mines to regulate the value. Platinum is mainly used by the automotive industry to manufacture catalysts. When the demand for cars drops, the price of platinum follows (platinum was $ 1,890 an ounce in March 2008, $ 1,600 in March 2010). The gold price hits record prices, but the most important factor influencing the value is the exchange rate difference between the euro and the pound. In 2003 £ 1 was worth € 1.53. Today it's worth € 1.10. Since most of the jewelry that you find in Dublin shop windows was either wholly or partly sourced from the UK, this exchange rate difference has a significant impact on the retail price. It is not uncommon for a ring that was bought for € 8,000 in 2003 to be easily replaced today for less than € 6,000.
"So what?" You might ask. “If I lose the ring, I get a nice fat check for 8,000 euros. I will replace the ring and go on a nice vacation with the change. & # 39; Think again Very few insurance companies do their own claims settlement. They employ specialized claims regulators to settle claims. I once discussed this process with a representative of one of the largest of these companies who spoke openly about it. He told me that the insurance companies received far too many fraudulent claims. As a result, claims regulators were advised not to make cash compensation payments, but to replace the goods. In this sense, the claims adjuster pays little attention to the final number (the rating), but rather to the actual description (the rating). They take the report and go to their supplier and ask "How much does it cost to replace it?". This is one of the main reasons why insurers do not accept one-line descriptions written by people in retail without valuation training. They want a description that can effectively replace goods.
With overvalued jewelry, you only achieve one thing: more profit for the insurer. It may be a shock that the item you bought from the bank a few years ago isn't going to add value, but this is the reality of the time we live in. It makes no sense at all to continue paying an inflated premium because you don't want to be told that something is now worth less than it was. We all need a little bit of pragmatism in this regard. A well-written, regularly updated review allows you to pay the right premium and ensure that your jewelry can be properly replaced in the unfortunate event of loss or theft. Isn't that why we have insurance at all?