Frequently Asked Questions

Most policies have limits for jewellery items that are not listed, usually a figure between $1000 and $3000 for each, but some are as low as $500. There is also usually a total limit for each claim of between $3000 and $20,000 irrespective of the number of unlisted items in the claim. For items over that value or level you will need to list them on your policy.

It is a document that contains a good colour photo, a detailed enough description to allow a current value to be calculated without re-examination of your items, and a value or values for each that represent the amount the item should be covered for under the terms of the Policy.

There are two ways your jewellery may be covered by your policy, which is why many valuations list two insurance values. One is the Replacement New Value, which is the amount necessary for you to purchase a brand new item of equivalent quality. The other is the Indemnity Value—more recently referred to by insurance companies as “market value”, “present day value” and “current value”—this is the amount necessary to purchase an item of similar quality age and condition—i.e. the second-hand retail value.

The Insurance Company will require some proof of ownership, and evidence of the value of the item. Once the claim is accepted, the current value will be recalculated from the item description in your valuation. If your cover is for Replacement, you will usually be issued with a voucher to purchase a new item. If your cover is for Indemnity the insurance company usually has the option of replacing as above, or paying you the Indemnity value in cash.

No. When you send your valuation copies in to your broker or insurance company, it represents the amount you want your jewellery covered for, and forms the basis for the premium calculation. By accepting the valuation the insurance company is not promising to pay the valued amount. This is because they are insuring the item, not the valuation. Claims are settled on the value of the item at the time of loss. All of which is why the accuracy and detail of the description in the valuation is so important.

Read the fine print of your insurance policy or ask your insurance company. Some policies that offer replacement on your contents exclude items such as cameras, sports equipment, and jewellery – paying only the second-hand (Indemnity) value. Most companies offer the option of upgrading to a full replacement policy for jewellery.