When purchasing insurance, you are likely to be asked how much cover you need. When insuring your home, you need to make sure that you have enough cover for the maximum amount which could be claimed. So, how can you make sure that you have reached the correct figures?
By obtaining professional valuations, you can take on independent professional advice. But does this apply to everyone?
If your insurance requirements are for buildings cover less than £1m and contents cover less than £100k with few valuables, insurers will often offer blanket cover where you purchase a policy that allows for a maximum figure beyond your requirements.
However, if your insurance requirements are greater than these blanket policies or if you have a large collection of jewellery and/or art, professional valuations may be required. Furthermore, individual items of high value may need to be supported by a professional valuation even for blanket policies.
For jewellery and watches, the value should be established by a professional jeweller. Most high street jewellers will be able to produce a valuation report and will often charge a flat rate per item or a percentage of the value of each item. Some jewellers even offer online valuations where you can send a copy of the original purchase invoice and details of the item along with photographs.
The value of jewellery and watches is volatile due to market pressures but, at the time of recording, their value has been increasing. In times of economic slowdown, investors put their faith in tangible items such as watches and the price of precious metals increases.
For art and antiques, specialist valuations from a qualified professional are essential. These are often undertaken during a home visit where the valuer will value the entire collection and then produce a report which can be provided to the client and their insurer.
As with jewellery, the value of art and antiques is subject to market conditions. Popular artist, Banksy’s, work has soared in value as his profile has been raised. Consequently, prints which were purchased for less than a thousand pounds can now be worth tens of thousands. Conversely, the value of brown furniture has plummeted as demand has decreased. Home design no longer favours these antique items and this has led to an oversupply.
For more information about valuations with regards to your insurance policy, please email email@example.com. To learn why valuations are important, please read our previous post about underinsurance.