Insurance Claims - pitfalls + guidance

Insurance Claims - pitfalls + guidance

Unfortunately many of us have occasion where we lose a loved piece, or pieces, of jewellery. This can be a troubling time and we've amassed a lot of experience in this. We aren't insurance experts, though this experience has led us to gather some useful guidance together. This can helpful if remedial jewellery repairs are needed. 

Firstly, read and know the jewellery section in your policy. Look out for (1) the total amount of jewellery you have cover for; (2)  the Single Item Limit and (3) any exclusions. This can be simply worded or more complex as all policies vary - do check though as it's essential.  Note how your insurer will replace your items. Some will allow you to choose the manner of replacement, others will steer you into their replacement network. Are you happy with that?

Do bear in mind you can insure jewellery separately and this type of policy may not have an excess, unlike most home insurances - often standalone policies may be more understanding of jewellery, rather than 'standard' package policies. You can see one example of a standalone policy here, others are available. 

Second, keep a record of what you have. This isn't the same as formal valuations for insurance; after all you may not need single items valued. You can note and photograph your items as a record - this way you can prove to an insurer what you have as well as remember it all (after a big loss, it's sometimes hard to remember every single item). Photograph with a ruler for scale, and maybe weighthings too, collecting all the information in a document. All insurers will require you to prove the value of an item in order to be able to claim for it so if you do not have a valuation, try to also keep a receipt to be used in conjunction with photographs.

Third, in the event of a claim don't be immediately persuaded into immediately accepting how the loss handling process goes or the terms of your settlement. Often you'll be offered vouchers - a common scheme is LMG vouchers/ LMG Gemcheck cards which Jacobs accept - check your policy to see if this voucher settlement is there (section one above). If you ask for a cash settlement, you may be offered less than your claim on the grounds that the handler believes they can replace exactly what you lost for a lower amount, typically through their own network of shops or even their in house jewellers (not usually an independent jeweller). One of the claims management companies some insurers use is owned by Aurum jewellery group who will steer claims back into their shops - Goldsmiths - so do be aware. You can challenge this. It is for you to decide if what they offer you via their in-house or network of shops is equivalent to what you lost. 

The National Association of Jewellers has this guidance - click here. Additionally, you can have a read of these articles to understand what's going on...

Article one - this is money

Article two - financial ombudsman ruling

Article three - the telegraph newspaper

We will always try to help you navigate your way through. This situation can be avoided by insuring with a jewellery insurance specialistsuch as TH March.