Millions of pounds worth of personal diamonds could be underinsured, according to Swinton, the UK’s leading home insurance high street retailer.
As sterling soared against the US Dollar over the last three years, British bargain hunters flocked to America to snap up diamonds and other items of expensive jewellery.
Swinton is warning that a diamond ring bought in the USA 12 months ago would cost more to replace if lost or stolen and consequently the owner would be underinsured. For example, a diamond bought for $5,000 in February 2008 was worth £2,531. To replace the same $5,000 diamond today would now cost £3,558[1].
Swinton is urging anyone who bought valuable jewellery from the US during this boom period to have the items re-valued and ensure they are properly covered. Steve Chelton, Insurer Development Manager, for Swinton said “It is essential that everything with individual item cover is correctly valued to guarantee that the insurance is valid.
“The biggest danger of underinsuring items comes from an industry-wide process known as ‘averaging’ whereby, for example, claiming for an item worth £3,000 that is only insured for £2,000 could result in just a £1,000 cash payout.”
“The price of diamonds is not set in stone. People who own diamonds need to be aware their value has increased therefore they may be underinsured.”
“Most home insurance polices only cover items worth up to £1,500. I would strongly recommend that any valuables which appreciate are valued annually and ensure that your existing contents insurance cover is sufficient. If they are worth over £1,500 an individual item policy should be taken out.”
Director of D & J Jewellery, Shudehill, Manchester said: “In the past 30 years we have sold over £10 million worth of diamonds here in Manchester and we always advise our customers to adequately insure their purchase. Not only does this protect them from the annual appreciation of diamonds but also from the falling value of sterling against the US Dollar and euro.
“We have noticed that over the past 12 months there has been a substantial increase in the number of customers asking for valuations of their jewellery. However we would advise anyone who has bought a diamond or any other jewellery in Europe, USA or other parts of the world over the past few years to have a valuation to guarantee that their insurance coverage cover is sufficient.”
-ENDS-
For more information contact Anoushka Foster, Michael Travers or Daniel Kennedy at SKV Public Relations on 0161 838 7770.
About Swinton
- With 580 branches nationwide Swinton is the UK’s largest high street insurance retailer
- Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community
- Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance
- With a dedicated team of advisors on hand at every branch to search a panel of insurers to offer quality cover at competitive rates
[1] Source of exchange rate: Bank Of England
