Protect gold to avoid Valentine’s heartbreak
As the price of gold soars, rural insurance firm Cornish Mutual is warning people in the Westcountry that their valuables may not be adequately insured in the lead up to Valentines Day next week.
With experts predicting the precious metal will reach an all-time high of $2,000 per ounce later this year, the insurer is urging people with expensive valuables, such as gold jewellery and watches, to get them re-valued.
During 2011, the price of gold saw an increase of 50 per cent and Cornish Mutual is concerned many people in the South West will have items that are significantly undervalued and could find themselves losing out if they had to make an insurance claim for an item being lost, stolen or damaged.
Cornish Mutual, which has nearly 24,000 Members across Cornwall, Devon, Somerset and Dorset, has seen a number of cases where a re-valuation on lost valuables has resulted in a drastic increase in value.
Glenys Wilkins, owner of Wilkins Jewellers in Bridgwater, Somerset, says: “People are often not aware of the value of their gold jewellery until they actually lose it and want to make a claim. They usually can’t believe the amount the price has increased, even in the past two or three years. Most insurers require an up-to-date valuation, as well as proof of ownership, so I would recommend that people carry out a re-valuation at least every three years. We hold a valuation day on the last Wednesday of every month, so anyone with items they think may have increased in value can come to get a professional opinion.”
Not all insurance firms will allow a re-valuation after a claim has been made, which is why Cornish Mutual is encouraging its Members to obtain new valuations for any gold they have insured. It is also important for people to make sure their home contents cover is correct, so when it comes to making a claim they do not find they are underinsured.
Nick Howe, local Inspector for Cornish Mutual in Somerset, explains: “When someone first comes to us for an insurance quote, we ask for an up-to-date valuation on valuable items like gold jewellery, but as many of our Members have been with us for a number of years, some of those valuations are now out of date. Because of the drastic increase in the price of gold recently, it’s worth making sure that you are adequately insured for your valuable items.”
He adds: “Some insurers will only allow claims to the amount of the original valuation. Although nothing can replace the sentimental value of jewellery gifted to you by a loved one, by correctly insuring your valuables and having them valued regularly you can at least be sure of recovering the financial loss.”
For more information about Cornish Mutual, visit cornishmutual.co.uk.