Gold Price

15/03/2008   Are you underinsured

Since gold has soared in value this week and hit an all time high of $1,000 per ounce policyholders should be mindful to check their sums insured.

The basis of valuation applied to most of GJIS policyholders is replacement cost price when the loss occurs which means that stock and goods in trust sum insured should reflect the current price.

Policyholders need to review the value of their stock and goods held in trust.

Normally the GJIS Jewellers' Block policy does not contain an underinsurance or "average" clause because the policy is designed to take into account the fluctuating value of precious metal or gemstones.

However in extreme circumstances (as recently experienced) it would be considered prudent to advise any substantial increases in stock or goods in trust values to one's insurer. The amount of increase in value at risk and whether you wish to increase your sum insured is something for your insurer to consider and then decide if it warrants additional premium.

Due to the nature of a Jewellers' Policy you have the option to insure full value or a selected sum insured…. providing you have advised your insurer of the full facts, meaning the full values at risk.

The main areas of value at risk and to check are:

• Your premises
• Sales Representative stock or sample ranges
• Exhibitions
• Entrustments to others, e.g. Approbation and Outworkers
• Parcel limits in respect of Sendings by post or carriers

Policyholders will be able to manage the risk and limits in some of these departments (for example the value of a parcel sent by post) however stock on the premises or with Sales Reps are harder to control.

Contact GJIS for specialist advice and assistance - Good communications is the best Policy!