What Your Insurance Company Wishes You Knew About Valuations

There are a number of families in the UK, that own valuable possessions, such as jewellery, art, and several other such stuffs. Additionally, there are several misconceptions associated with these valuable possessions. First of all, some families don’t think it’s necessary to get an appraisal and documentation. Secondly, the prices of jewellery, art, and similar items do not change even as they age and the market value of the materials increases. Apart from this, very few people know about or actively plan to have all their assets valued, and once an item is insured, they believe it is safe and secure. But when a situation arises and it comes time to make a claim, many people who own the assets as well as the collectors are shocked to discover that their artwork, jewellery, luxury watches, etc, are either undervalued or not properly documented, which leads to being underinsured in the future.

This misconception and lack of awareness regarding the safekeeping of these assets have resulted in a number of issues and therefore in the current situation, the valuation companies want that everyone is being educated about the importance of jewellery and proper documentation simultaneously. Always remember that valuing your assets is not a once-in-a-lifetime task; it should be done every 2-3 years and passed down through generations, while also ensuring you receive the correct value for your belongings. As luxury markets continue to evolve and replacement costs rise, insurers are placing greater emphasis on accurate and updated valuation reports. In the absence of updated documentation for all these assets, your jewellery might stay underinsured in case of old jewellery valuation even when it has outperformed every other sector.

It is therefore crucial for you, as the owner, to understand that safeguarding your assets and knowing their true worth requires obtaining a valuation from a reputable agency in your area as soon as possible. Insurance companies believe that, as an asset holder, you should be aware of several important factors. If you are someone new to all this stuff, then this guide is just the right article for you. Let’s dive deep into the details and explore what your valuation company wants you to know.

Your Valuables May Be Worth Far More Than You Think

It is a fact that not everyone is aware of the need for valuation. But even if they know, most are unsure how often to get the fine art valuation or any other kind of valuation done and the documentation updated. One thing that most of them miss is that the luxury asset markets can change dramatically over time. For example, owning luxury handbags, watches, or similar items may mean that their prices have appreciated over the years. But if you do not have the documents of the latest watch valuation or jewellery valuation, the chances are pretty high that they might be useless for you, as the price might have changed.

Why This Creates Problems

This leads to a huge problem. You got the valuation done years back, and currently your asset is insured according to the price documented for that asset – a valuation that was done years ago. Now, the chances are high that the value of your asset might have increased, and therefore the insurance that you have for the asset is undervaluing your asset, and in any case of unforeseen circumstances, the chances are that you will definitely get the value mentioned in your document, but that will be quite less when compared to the real worth.

This is especially common with:

·        Vintage jewellery

·        Fine art collections

·        Limited-edition handbags

·        Luxury watches

·        Inherited valuables

It is therefore critical that you get the valuation of all your assets done at an ideal interval of 2-3 years and accordingly get the insurance done. This will save you from getting your assets undervalued and also help you have a current, fair idea about their worth.

Insurance Companies Need More Than Just Photos

If you are someone who thinks that all an insurance company needs are the photos of the jewellery and, accordingly, the watch or jewellery valuation will be done, then you are totally wrong. While photographs are helpful, they usually don’t provide the level of detail insurers require when processing claims. Professional valuation companies require extra documents, like buying receipts and previous owners, to value an asset.

Summing Up

To sum up, there are several key aspects that insurance companies expect customers to understand. In this article, we have outlined a few important areas that you need to understand when obtaining a valuation. These tips will help you in getting the right valuation done and that too without much hassle.