SOUTH Africa’s turbulent economic environment is wreaking havoc on the cost of just about everything.
The knock-on effect can, however, be seen in the increasing value of appreciating assets, such as jewellery, says Marketing Manager of insurance brokerage Aon SA, Many Barrett.
This means the valuation of valuable jewellery like wedding bands should be updated or could most likely be under-insured if lost or stolen.
‘It is highly recommended to have your valuation certificates updated at least every two years as a rule of thumb, even more frequently amidst the current exchange rate volatility.
‘Insurers require valuation certificates that are dated prior to the loss or damage of an item to prove the value as well as ownership of an item of jewellery.
‘Any reputable jeweller is qualified to provide a valuation certificate.
‘Once the value of an item is confirmed, it is advisable to insure it for its current replacement value.
‘You certainly do not want to find yourself in a situation where the amount your insurance pays for a lost or stolen item, is not adequate to replace it.’
She added jewellery should be insured on an ‘all-risks’ basis which offers worldwide cover for items that are taken out of the home.
‘Household contents cover the contents whilst they remain in the home and is not applicable to items taken outside the home.
‘The majority of insurance policies have a safe warranty where the insurer requires an item of high value to be kept in a locked safe when not worn.
‘This means that if a ring worth R55 000 is left on a bedside table and the item is lost or stolen, there would be no cover.
‘In the event that you went swimming in the ocean and lost your wedding ring in the water, it would generally be an insured event.
‘However, all insurance policies do require that the client acts responsibly.’
Barrett advises jewellery owners speak with professional insurance brokers to interrogate the terms, conditions and any exclusions that may exist to ensure that there are no surprises waiting at a claims stage.
