In­sure to match the mar­ket

It’s time to re­view insurance if you own gold and di­a­monds, writes Sarah Daly.

The Advertiser - Real Estate - - Front Page -

GOLD and di­a­mond prices are on the rise, but own­ers are not in­sured to match cur­rent mar­ket con­di­tions, in­dus­try ex­perts say.

US gold prices peaked at more than $US1900 an ounce ear­lier this month and last week­end it was trad­ing at al­most $US1830 an ounce.

RAA insurance claims man­ager Tony Phillips says mar­ket in­for­ma­tion also in­di­cates a 40 per cent in­crease in the whole­sale price of di­a­monds un­der 0.5 carats, and 15 per cent for stones over 0.5 carats.

‘‘Most peo­ple are likely to have di­a­monds in the un­der-0.5-carats range and I see too many cases where cus­tomers want to re­place a cher­ished piece of jew­ellery and have to set­tle for a lesser piece be­cause their valu­a­tion is out of date with cur­rent mar­ket con­di­tions,’’ he says.

Mr Phillips says there is an un­bal­anced fo­cus on new pur­chases when it comes to rises in gold and di­a­mond prices: ‘‘It’s easy to over­look the rings and favourite items we wear ev­ery day, but they may be worth a lot more now.’’

Ian Berry Insurance spokesman Paul Mo­dra sug­gests re­view­ing your home-and-con­tents pol­icy once a year to make sure it is up to date. ‘‘You should al­ways re­view your level of cover be­cause even though you may have taken out $20,000 three years ago, be­cause of jew­ellery val­ues go­ing up, the amount may no longer be enough,’’ he says.

Mr Mo­dra says con­di­tions vary by pol­icy and in­surer, so it is also important to con­sider your spe­cific pol­icy: ‘‘Although you may have, say, $50,000 of home and con­tents insurance, it may not cover the to­tal cost of your jew­ellery, so you need to make sure you have spec­i­fied valu­ables cover,’’ he says. ‘‘You may also have to get more ex­pen­sive items val­ued, de­pend­ing on the lim­its set by your in­surer and the spe­cific pol­icy.’’

De­spite the ris­ing prices, Class A Jewellers man­ag­ing di­rec­tor Brad Muck­low says he has not no­ticed more cus­tomers hav­ing their jew­ellery reval­ued.

‘‘In the past, val­u­a­tions have stayed rel­e­vant for as long as five to 10 years but . . . I would rec­om­mend a new valu­a­tion if your ex­ist­ing one is more than two years old,’’ he says.

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