How the rising price of Gold could affect you in the event of a claim
The news has been gloomy on the stock-markets in recent months, but a few areas for investment have seen increases.*** According to figures from The Royal Mint, between 2019 and 2021 gold went from 987.27£/oz* to 1257.26£/oz* – that’s an increase of 27%.
Even if you remove the volatility of recent times gold has increased by 34% over the past 10 years, from 938.13£/oz* in 2011 to 1257.26£/oz* in 2021.
Similar increases have also occurred for other precious metals.**
So what does this mean for you?
You may assume it’s only investors or commodity traders, who buy and sell gold and other precious metals; that are affected by these price increases, but they may also affect you too.
Think about what jewellery you have, that’s made from gold/ silver/platinum, then think about when you last had it valued for insurance purposes It is also worth remembering at the same time, that with its value and often compact dimensions, jewellery can be a source of easy and rich pickings for thieves.
Some claimants are missing out on full settlement because values are out of date. Gallagher can assist you by undertaking an insurance audit to help ensure your cover is adequate.
Jewellery and precious metals are specifically noted under the policies we arrange through our panel of specialist insurers. Unlike many standard policies, like those available online, the policies we offer do not contain a “condition of average” clause to settle claims.
This means the insurer will only be able to settle claims at the percentage you are actually insured for. For example, if the value of your jewellery shown on your schedule only represents 70% of the full replacement value then the insurer will not pay more than 70% of your actual loss, even if your loss is less than the declared sum insured.
Some of our insurers provide an automatic uplift to 150% of the original sum insured if you have submitted to us an independent professional valuation which is less than three years old at the time of the loss. It is worth noting that even with this unique benefit there could still be a potential shortfall at today’s prices but can provide a more significant level of protection.
Tips for insuring jewellery
- Tell us of any new acquisitions, or if any item’s valuation exceeds the single item limit on your home contents insurance policy
- Get a professional valuation that reflects current market trends
- Take photos of each valuable item
- Keep a copy of your professional valuation with your broker, bank or solicitor for safekeeping
- Take jewellery to be professionally cleaned and checked
- Keep items not being worn in a suitable safe.
Specialist advice
If you would like to know more about having your jewellery valued or about insuring your jewellery with Gallagher, we would be happy to talk.
This information is not intended to constitute any form of opinion nor specific guidance nor legal or financial advice, and recipients should not infer such from it or its content. Recipients should not rely exclusively on the information contained in the bulletin and should make decisions based on a full consideration of all available information. We make no warranties, express or implied, as to the accuracy, reliability or correctness of the information provided. Our advice to our clients is provided subject to specific terms and conditions, the terms of which take precedence over any representations in this document. We and our officers, employees or agents shall not be responsible for any loss whatsoever arising from the recipient’s reliance upon any information we provide and exclude liability for the statistical content to fullest extent permitted by law.
Sources:
* https://www.royalmint.com/invest/bullion/discover-bullion/get-into-gold/
** https://www.internationalinvestment.net/opinion/4009789/looking-hood-market-precious-metals
