Diamond Prices and Jewellery Insurance – The Truth Behind the Headlines

Posted on February 27, 2025February 27, 2025 by Annabell Parry

Anyone in the jewellery or related industries can’t open their laptop without being hit by another doom-laden headline about diamond prices.

The latest reports declare that Anglo American, the majority owner of De Beers, has published another vast write-down of its investment. Meanwhile, Alrosa, the Russian diamond giant, has been propped up by the Russian government. Both companies are reportedly stockpiling around $2 billion worth of unsold diamonds in an increasingly challenging global market, driven by geopolitical tensions and advancing technology.

These are mining giants, and the headlines are dramatic. However, it takes around two years for a diamond to move from the mine to the shop window. This is a crucial factor when valuing an engagement ring. Despite the headlines, these market shifts do not immediately affect valuations or replacement costs. Diamond prices fluctuate constantly, and experienced valuers rely on top trade sources such as RapNet. The best valuers consult at least three independent sources for each stone they assess.

A knowledgeable valuer will also understand the impact of Russian sanctions introduced in 2024, the conflict in the Middle East, and the downturn in Chinese middle-class spending. All of these factors influence diamond pricing and the ability to source replacements in case of loss.

The Danger of Headlines

Professional brokers, insurers, and jewellery owners are often short on time, scanning dozens of headlines each day. Decisions made solely on headlines risk being based on incomplete or misleading information. At worst, they could be influenced by an opinion piece paid for by a company with something to sell.

Diamonds hold a unique place in the retail market, as they have for centuries. Once reserved for royalty and the wealthiest elites, diamonds became a mainstream expectation by the 1950s, particularly as engagement rings for modern, independent women.

The Perception of Falling Prices

“But diamond prices are falling,” you may say.

Historically, younger buyers and the bridal market have been major consumers of small natural diamonds. However, over the past decade, their social feeds have been flooded with man-made diamonds (not ‘laboratory-grown’ which is a misnomer) and high-quality, stylish dress jewellery from brands like TJC and Pandora. The shift in pricing, environmental concerns, and changing consumer preferences have had a major impact on the lower-to-mid market.

It is true that diamonds under 1.50ct have seen price drops, in some cases by as much as 30%, as their key buyers have moved away.

Prices are per diamond for a round brilliant cut, F colour VS1 clarity GIA diamond Report in March of each year.

These are approximate selling prices in the UK at that time with the historic approximate retail margins and timely interest rates taken into consideration.

But Do Not Be Fooled

The high-net-worth market is thriving.

Diamonds over 2ct have always been beyond the reach of most buyers, making them the preferred size for professionals and affluent individuals. Second marriages, milestone anniversaries, or the sale of a business often drive purchases at this level. This is not the market that man-made diamonds have disrupted.

For high-net-worth and ultra-high-net-worth clients, jewellery values are not falling. Rubies bought in the 1990s, heirloom Art Deco and Cartier pieces, and upgraded engagement rings all hold their worth. In fact, many of my clients own multiple engagement rings, one for weekday wear and another for weekends.

Man-made diamonds are certainly purchased, but often as travel jewellery or gifts for daughters rather than as investment pieces.

A glance at recent fine jewellery auctions shows that branded vintage pieces from Cartier, Verdura, and Van Cleef & Arpels continue to command strong prices, along with larger, certified diamonds. These are not easily replaced and require an expert valuer to determine a proper replacement figure. Some brands such as Cartier and Tiffany increase their prices twice a year. On average the basic beautiful LOVE bangle from Cartier increases £300 every year.

New

Pragnalls Jewellers 1.51ct - £18,000	Pragnalls Jewellers 3.02ct - £74,650
Second Hand

Cartier yellow and white diamond cross over ring Wooley & Wallis auctioneers Estimate £4-6k Hammer £9.5k	Victorian antique cluster ring Harper Field Auctions Estimate £8,500 - £10,500, Hammer £28,500	1980's Cartier Panthere earrings $66,000 at Opulent Jewellers - USA

Additional Factors

Another important factor is the price of gold – the value of a 1 Troy Ounce of gold has increased 819% from 2000 – 2024, as displayed in this graph:

Pound / Dollar interest rates have fallen and retail margins have had to be pared back to compete with global and technological competition and wages for goldsmiths, polishers, cutters, apprentices, setters have in some cases tripled since 2000.

The Role of Professional Valuers

Valuing jewellery, like the value of a car, is a sum of its parts plus the brand, popularity, rarity and condition. One would not stop valuing cars because the price of steel had dipped. So too is the case for the valuation of diamond jewellery even when the markets are in flux.

Jewellery valuation is a specialised profession that does not always get the credit it deserves. It requires years, often decades, of expertise, and valuers do not typically shout about their knowledge.

But in a world flooded with misinformation and sensational headlines, their insight is more relevant than ever.

So, where do you get your information?

To arrange a jewellery valuation call us on 01883 722736 or [email protected]

General Contents – The invisible problem

Posted on February 26, 2025February 26, 2025 by Alastair Meiklejon

Back in 2022, I wrote an article that quickly became one of the most read pieces that I had created up to that point and it focussed on what I believed to be a hidden problem in the world of insurance – the things that clients and brokers overlook – the hidden general contents.

In the three years since then, you would be amazed how many conversations I have had with brokers about washing machines and carpets – it is not what I would describe as the glamorous end of what we do as valuers, but it is of such importance that it really needs to be at the forefront of people’s minds when correctly insuring a property and its contents.

Back in 2022 we saw what can only be described as an astonishing increase in the cost of goods and services, and according to the office of national statistics a 16% increase in the cost of furniture over the 12 months previously – meaning that a £10,000 settee bought in 2021, would now be £11,600 just 12 months later.

This surge in furniture costs was driven by a combination of factors that all collided at once. Supply chain disruptions from the pandemic were still causing delays, raw material prices were climbing, and labour shortages meant longer lead times and higher production costs. On top of that, a shift in consumer behaviour saw people investing more in their homes, with demand for larger, more comfortable furniture increasing as remote working and home entertainment became the norm. Retailers, faced with rising expenses and strong demand, passed these costs onto consumers, resulting in the sharp 16% rise. While inflation has eased slightly since then, the cumulative effect means replacement costs today are far higher than most people realise.

Where we are at in 2025 isn’t quite as bad, but cumulatively that same settee would be close to £15,000 now after the past few years increases reducing to around 2.5%. However, there was a peak at the end of 2024 – so it is unknown where this could head.

The forgotten items are always the same pieces, from 2022 – to now. Whilst we all remember the £5,000 painting that we bought, the name of the gallery and we have probably tracked the increase in value of the artist – maybe in a little file of ‘important things’. What most of us have not done is looked at a similarly priced pair of curtains and thought about what they would cost to replace….to be fair it isn’t on a list of ‘exciting things to do at the weekend’ is it?

One of the major misconceptions that many clients still have is that they don’t need to have a valuation, because they last purchased anything new in 2003 and they would do things completely differently now if they had to redecorate…..however….whilst this may be true, it is in fact the exact reason why they need to have an up to date valuation completed.

In the years since the end of lockdown, so many new standard ways of living have emerged. For example, the first year encompassed the “I must not let go of my lockdown hobbies and ways” period, meaning that £2,000 bread maker was still being used weekly, as was the kiln for your newly found love of studio pottery, but most likely it was the newly built summer house where one of the family spent a significant amount of the year, usually with a very large television, and a bar. It’s actually quite frightening how common it is for these additional parts of the property to be excluded from the schedule and usually at best there is a small amount on the policy included for their general contents.

In addition, the shift to remote work has brought an increase in home office setups, which often involve high-end furniture, equipment, and technology. These items are frequently overlooked when it comes to valuations but can significantly affect the overall value of your contents. As more people continue to work from home, ensuring these assets are properly covered is essential.

There has of course been “Cluttercore” which, don’t laugh was an actual thing…..Walking into someone’s house where a single wall may have had 30 pictures all intricately squeezed in isn’t uncommon, and suddenly a grandmothers antique frog collection from the 1920s needs to go on display.

Whilst the future of TikTok has been in jeopardy of late, the one place where it has always been at the forefront is convincing people that they should paint their own furniture, stain their own curtains and generally create many houses full of unfinished projects – (don’t ask my wife about the outhouse full of chairs, it’s a work in progress) which in turn has created houses of ‘things’ which has been a big change to the ‘minimalist’ ways of living for the last decade or so, and personally I am a fan, I like to know that I can find a pasta pan without having to drive to the storage container.

One of the biggest things that I have seen a rise in is subscriptions. Whilst most people reading this will have enjoyed Netflix for a few years before 2020, what one couldn’t envisage was the template of subscriptions to be copied over into many more areas; books, food, plants, clothes and many more which of course have not been included in recent valuations or schedules.

One of the biggest areas that have changed is the “massive settee that you can fit nine people on” trend that seems to be occupying the country, before when a quiet farmhouse in Wiltshire was happy with the three red leather Chesterfields that had been there since the 1980s, it was clearly the right time to replace with a corner unit where a family could literally eat, sleep, and watch previously mentioned Netflix subscriptions.

Meanwhile, another often-overlooked asset class is memorabilia. With memorabilia auctions on the rise, the value of collectibles – from sports items to historical artifacts – has seen dramatic increases over the past 12 months. We’ve seen the auctions of Freddie Mercury, Vivienne Westwood, Mark Knopfler and Nigel Mansell, to name a few in the past 18 months. If you have any memorabilia, now is the time to review its current worth, as it may have appreciated substantially in a short time.

So hopefully a few of these examples might convince you that you or your clients are long overdue a valuation – we won’t judge, unless that corner unit has a built in fridge and drinks holders, that is.

To arrange a valuation of your house contents, call us on 01883 722736 or email us on [email protected].

Protecting the Cash in the Attic

Posted on May 21, 2024August 23, 2024 by Stephanie Connell

Frequently, for those whose homes are filled with antiques and art – particularly when they have been treasured family possessions for generations – potential replacement values for insurance can be overlooked.

Whilst jewellery and silver are often undervalued for insurance – recent costs having increased – there are certain types of objects which can be discounted completely.

With that in mind, Doerr Dallas Valuations would like to share a few examples where interesting history and excellent quality have led to growing value and this fact may lead to under insurance.

Georgian Costume Jewellery

The 18th and early 19th centuries were a time of great innovation and advances in technology. One of the fields in which this was obvious was jewellery design. With sumptuary laws being ignored, and with a growing middleclass keeping up with the latest trends, the desire to own the most fashionable jewellery became widespread. This demand was met by advances in artificial stone production – what would now be described as paste jewellery. Paste stones could be manufactured in a range of dazzling colours – mimicking – or even more vivid than their precious stone equivalents. It made jewellery more affordable to the fashionable of the day.

Costume jewellery, in terms of its financial value, has often been disregarded in comparison with fine jewellery equivalents. However, in recent years a strong market for costume jewellery as a whole is evident. Recently, the Georgian paste jewellery market has strengthened resulting in rocketing prices.

At auction, estimates have been smashed – in February 2023 a suite of blue paste jewellery (parure) comprised of a necklace (which would have been attached by a ribbon), a bracelet and a pair of earrings was offered in auction (Woolley & Wallis lot 148) with an estimate of £200 – £300. The eventual total selling price was over £25,000!

Domestic Metalware

Objects made from brass, copper and pewter may appear ordinary but again their values can be surprising. Lighting, fire grates, door furniture, mortars are all things to consider when arranging an insurance valuation.

Early pieces are highly prized by collectors and their replacement value can be in the thousands. In a recent auction, (The Chapman Pewter Collection – Bishop Miller; April 2023) a rare pewter candlestick manufactured during the reign of Elizabeth I/ James I achieved a selling price of over £30,000 (Lot 43). If you are uncertain as to the origin of your metalware, it is always best to consult a specialist valuer.

Furniture

In recent years the antique furniture market has been much maligned, with reports of the decrease in values being widespread. While the market may not be that of the 1980s, quality antique furniture continues to be esteemed and seeking replacements competitive.

Modest oak and antique country furniture should be closely looked at when considering insurance. Windsor chairs, mule chests, dressers and farmhouse tables are respected amongst collectors.

Treen

In a similar vein to country furniture and domestic metalware – treen – domestic objects made from wood may have been disregarded. In this fierce collecting field, prices can be surprising and some objects extremely rare.

Toys, Games and Juvenilia

When considering a valuation, looking at the playroom or nursery may not be the first area for attention but with the market for antique toys and games proving ever popular, replacing these treasured possessions can be costly.

Important and interesting 18th and 19th century dolls houses are collected not only by those interested in toys, but for those with a passion for architectural history. These microcosms of the family home often include complete furniture and decoration – showing how families lived and operated their homes. To replace good examples, the anticipated cost will be upwards of £10,000.

Rocking horses have a history which dates back thousands of years – the toy in the current form has existed since the 19th century. Rocking horses, both antique and modern, are a focal point for a playroom and as such should often be insured. When looking to acquire a good 19th or early 20th century example, one should budget over £2,000.

Playing cards, board games and games compendiums may be valuable depending upon age, manufacturer and scarcity. Toy specialists can offer guidance on teddies, dolls and antique toys and games.

Exploring the hidden treasures in your attic could be a delightful journey down memory lane. These items which hold dear memories close to your heart might even surprise you with their financial value.

Safes & Why You Need Them

Posted on May 7, 2024November 11, 2024 by Jenny Cooper

Jenny Cooper at Insafe shares her tips and recommendations on why you need safes for insurance.

Whether you own a prized collection of watches, a family heirloom with high sentimental value, or a large selection of jewellery, if you keep valuables in your home your insurance company will encourage you to purchase a safe.

But why do you need a safe? And what should you consider when purchasing one?

Selecting the right safe is very important. A home safe is a great tool for keeping your valuables secure, but there are several factors to consider to ensure that you have the right level of protection and that your insurance is valid.

The Association of Insurance Surveyors are a respected body of risk control experts working in the UK insurance market. Only safes that have been fully tested and certified by independent testing houses will gain an AiS certificate.

Beyond security, safes help keep important documents in one place, so there is no more rummaging through drawers or cabinets searching for documents or keys; everything is conveniently stored in one secure location.

But even once you’ve selected a reputable safe company, there are still several factors to think about. Below is a rundown of what your considerations should be when selecting a safe.

Protection from Theft

Home burglaries are an unfortunate reality, with thieves often targeting cash, jewellery and other easily transportable valuables. A securely installed safe acts as a deterrent, thwarting opportunistic theft attempts and safeguarding your assets against unauthorised access. Its robust construction and intricate locking mechanisms serve as formidable barriers against intrusion, making it significantly harder for burglars to pilfer your possessions.

We would even recommend using more than one safe. That way, if the burglars discover one safe, they won’t be aware of the other.

Fire Protection

Fireproof safes are specifically designed to withstand extreme conditions, ensuring that your belongings remain intact. In the event of a fire, a safe can protect your most valuable documents:

A copy of your Will
Birth certificates / Marriage certificates
Important documents
Passports
Savings books

During such an event, being able to prove your identity can be very important, especially when your world is already turned upside down.

Alarm System Connection

The option of safe locks with duress systems can be obtained in collaboration with the clients’ alarm providers for integration.

Lock Mechanisms: The Heart of Security

At the core of every safe lies its lock mechanism, the quintessential component responsible for fortifying its defences against unauthorised access. Lock technology has evolved significantly over the years, offering a diverse array of options tailored to individual preferences and security requirements.

Keys vs Keypads

Traditional key locks, with their time -tested simplicity, remain a popular choice for many homeowners. Operating on a basic principle of aligning tumblers within the lock cylinder, they provide reliable security without the complexities associated with electronic systems. However, their vulnerability to key theft/duplication, or the risk of misplaced keys, highlights the importance of diligent key management practices.

In the digital age, electronic keypad locks have emerged as a modern alternative, combining convenience with cutting-edge security features. PIN codes replace traditional keys, allowing quick, hassle-free access to your valuables with the benefit of reducing the risk of keys within the property being lost, stolen or copied.

Cash Rating

Safes are sold and listed according to their cash and valuables rating. This determines the level of cover guaranteed by the safe manufacturer and insurer. Jewellery/valuables cover is always ten times the cash rating.

The following is a guide as to the typical grades of safes available. For example, if you have a Grade 1 safe, this will allow you to keep £10k worth of cash/£100k jewellery inside the safe.

Safe Grade	Cash Rating	Jewellery Rating
Grade S2	£4,000	£40,000
Paramount	£5,000	£50,000
Grade 0	£6,000	£60,000
Grade 1	£10,000	£100,000
Grade 2	£17,000	£175,000
Grade 3	£35,000	£350,000
Grade 4	£60,000	£600,000
Grade 6	£100,000	£1 million
Grade 6	£150,000	£1.5 million

Digital locking systems offer greater security, ease of use, and customisation options, making them a preferable choice for safeguarding valuables in modern safes. Halo locking system is the only certified safe lock in the market which can be retro fitted to Grade 2 and above safes to increase the rating.

Insurers will work with safe companies to provide the increases. We would therefore emphasise the importance of choosing a safe equipped with a Halo locking system and a digital keypad. This combination ensures complete peace of mind regarding your security.

Size

It might seem obvious but making sure that you buy the correct sized safe for your home is very important. In home safes with high cash and valuables ratings, the safe walls are often very thick, this gives the illusion that the safe is bigger than it is. Make sure to check the internal size and that it meets your requirements.

If you have specific requirements and measurements, safes can be tailor made to your exact requirements, dimensions, colour and locking. Bespoke styling options, finger-print locking, internal LED lighting, watch winders and other features can also be obtained.

Weight

The weight of your safe is particularly important if you plan to install your safe upstairs or if you live in a multi-storey building. Whilst new safes are much lighter, they are still difficult to manoeuvre if installed in the incorrect location.

Installation

It is recommended that safe installations are carried out by qualified safe engineers to ensure they meet the requirements of your insurance company.

In essence, a safe isn’t just a metal box with a lock; it’s a fortress for your valuables, providing protection and peace of mind at home. Within its sturdy walls, our cherished items find refuge, shielded from the uncertainties of the outside world.

Additionally, safes offer privacy, especially if you have prying eyes – it provides peace of mind knowing your privacy is protected.

For optimal security of your jewellery and watches, we strongly recommend revisiting and updating your valuation if it hasn’t been done in the last two years. The reason for sharing this article is that as values continue to rise, your safe’s cash rating may no longer be sufficient.

Under Pressure – The Exponential Growth of Underinsurance

Posted on January 9, 2024August 9, 2024 by Alastair Meiklejon

The Exponential Growth of Underinsurance

As 2023 drew to a close, I look back on the year and reflect on the subjects I have found myself discussing most and even on the morning of the 27th of December at 9am I received a call from a long term client of ours whom is not only well respected, but incredibly astute, and this case highlights without a shred of doubt, the biggest problem in our collective industry currently.

A client of theirs is looking to insure a collection of jewellery with insurance values ranging from £1,000 – £20,000 – individually not huge sums, but collectively a significant amount. The figures have been gathered through somewhat standard avenues of what was paid for the item and “what we think it is worth/or worth to us”.

In my estimation, the collection is probably underinsured by a figure close to 50%, and on some individual items, close to 75%. We are now working out when we can get to the client as soon as possible in the New Year.

Whilst it may have been considered the ‘elephant in the room’ for many years, brokers and insurers are now discussing the problems that underinsurance can cause. We all know that the implications of underinsurance can be catastrophic, but how do we pass that knowledge on to clients and give them the knowledge that they need to make an informed decision about their cover, and having a professional valuation?

A recent example occurred during the summer, of which I was part of the team assessing a large estate that had been inherited from parents of a well known farming family. The figures provided were done so in the mid 1990s, and index linked from that date, with a figure of around £250,000 for the entire contents of the property.

Following the valuation, the figures were certainly surprising to the client, and the broker.

A general contents figure of £200,000
An antiques and collectibles figure of £210,000
A silver figure of £101,000
An art figure of £210,000

What astounded me is that despite being a heritage property, the insured still had all the contents in one general contents pot, with no specific categories indicated on their policy. Following the valuation, the client and broker now have a far better image of what they are insuring with correct figures for different areas, representing far better value for the client and a far better risk evaluation for the broker and insurer.

A recent survey completed by one of the biggest insurers of hight net worth clients in the United Kingdom has revealed that 67% of their clients need more guidance and assistance with their collections. This offers great potential for brokers to have the conversation with their clients about how they can help and offer an ever greater service.

What is clear is that the market is changing, with people’s tastes moving from more traditional avenues of collections and investment. The same survey indicated that 44% of high net worth clients invested in jewellery, and the same percentage in watches, which have both seen exponential growth in the last decade.

The great opportunity that a valuation always offers for the client is not only knowing the value of specific items within their collections, but also the figures of the collection total in addition to the individual items mentioned previously, so one can gather a ‘snapshot’ of the property.

So, should the subject of under insurance still be swept under the rug? Well, if its increased in value by 60% in the last five years, probably not.

General contents the invisible problem?

Posted on November 29, 2022January 15, 2025 by Alastair Meiklejon

Every week we see record prices being achieved by some of the greatest artworks known to man, with some of the most glamorous jewellery and watches going to auction at incredible sums, but how often do you talk with your clients about the carpet in the drawing room, or the suite of furniture purchased in the 1990s?

Just this week we have heard more news about inflation and cost of living rising again, and potentially this could increase well into 2023 and beyond.

So how does this effect your mid – high net worth clients and their contents?

The value of items within the ‘General Contents’ section of most customers insurance schedule has been rising for many years, even before COVID–19 and the dreaded lockdowns of 2020.

According to the Office for National Statistics, the values that we are seeing are increasing year on year for general home furniture by around 16% per year so a settee purchased for £10,000 this time last year would now be costing £11,600, with garden furniture increasing by up to 25% per year. So why is this?

The cost of manufacturing has sky-rocketed since 2019, with many companies having issues recruiting staff and/or sourcing materials, in turn the supply chain has suffered with transport issues in abundance – it’s not unusual to see waiting times run in to months for some items.

Two of the items that I am constantly surprised by are curtains and carpets, with some of our clients spending six figure sums on carpeting their homes, and a pair of lavishly lined silk curtains for a 13ft high sash window costing nearly £10,000, however on paper these have only increased by around 5% this year – but, this is only for the material and not the fitters or the makers, so in turn I believe that these figures are increasing by around 24% with that same pair of curtains now costing £12,400.

Whilst statistics are not available for the inflation of electrical goods, this market is different as the advancement in technology means that many items are out of date the minute they are released, there has of course though been a general increase across the board in most items of this nature.

Clothing will continue to be an interesting question with a broad figure of 8.5% inflation across the board, this however will absorb the designer and couture elements alongside the high street fashion world, which does not always give a totally accurate reflection of the mid-high net worth spending habits.

Whilst each manufacturer is different and sometimes these inflation costs will be absorbed into the operating profit of the company, in most instances, and especially in High Net Worth accounts, it is passed on to the client.

When taking an overall look at your clients, by all means be sure to look at the fine art, the jewellery and many other of the ‘visible’ items that clearly will have changed in value, but be sure that you don’t ignore the invisible ones that may well mean your client is underinsured.

Walk-through Valuation – SPECIAL OFFER

The Walk Through Valuation is a beneficial offering for you or your clients if current content values are based on a ‘guestimate’ or a ‘rough idea’ to ensure the values provided are accurate and up to date. For the comfort and security and assurance that in the event of any claim you are covered why wouldn’t you?

You don’t want to find a claim is not paid in the event of a loss, so ensuring your insurer has a true reflection of your values is so important. The Walk Through Valuation is designed for the Mid Net Worth client to establish/categories the contents correctly, on a room by room, category by category basis, itemising items of single value, identifying issues and providing cross room photographs. We don’t value the jewellery but we will discuss/establish if the current cover is adequate and any other areas of concern which would require a specialist visit.

A Senior valuer will attend the property to complete and the survey takes approximately 3 hours to complete. Our report will be issued within 15-20 working days providing recommended figures and illustrated.

So, to ensure you/your clients values are true and accurate, recommend the need for a Walk Through Appraisal today – up to 4 bedrooms – £540 plus VAT@ 20% including travel.

Call us today on 01883 722736 to book an appointment or email [email protected]

8 Problems with asset valuations clients may not recognise – what brokers need to know

Posted on October 31, 2022January 31, 2025 by Alastair Meiklejon

When a client tells you they have a valuation for their assets a broker may breathe a sigh of relief – but that relief could be misplaced.

Alastair will share examples of documents Doerr Dallas Valuations have seen from clients and brokers that are inadequate and explain why this is the case. He will also share ideas and questions that may be useful for brokers to help them raise these issues with their clients in a non-confrontational way.

Making sure your client has correctly valued all their assets will:

Ensure you are offering the best service
Reduce the chance of issues at the point of claim
Ensure the risk is correctly underwritten, insured and priced
Potentially lead to higher (but correct) premiums, and hence higher commission
Protect your PI from claims that you did not correctly advise your client

There will be the opportunity for Q&A at the end of the session.

Audience: useful for all levels of experience, and for both personal lines and commercial client-facing broking staff. Particularly useful for those early in their careers.

The importance of professional valuations for HNW clients

Posted on August 30, 2022January 16, 2025 by Rachel Doerr

Up to date valuations of assets are becoming ever more important – and the quality of that valuation can be critical. The last time anyone wants to discover it is missing or out-of-date is when a claim comes in and there are coverage issues.

Valuations are key for policyholders to:

Prove ownership
Describe the item, with a photograph
Give a current true replacement value for insurance purposes

Professional and up-to-date valuations are also key for brokers, AR’s and insurers because:

They help an underwriter correctly assess and price the risk – reducing the risk of underinsurance
They make policy negotiation conversations easier – e.g. clarity over what is owned, how much is actually worn vs. kept in a safe

Jewellery setting checks reduce the risk of loss/damage, and therefore claims
Should an item be lost/damaged, it is easier and quicker to assess the loss and handle the claim with a detailed description and accurate valuation (reducing claim management costs for all)
Better claims management = happier policyholder = higher retention (where you want to keep the client!)
Indicative of a “good insured” – they have invested in, and take care of, their property.

So what’s the problem with “valuations” in the industry at present?

There are many issues that can arise:

No valuation at all.
This could be because the item was a gift or has been recently inherited, or because the receipt or valuation has been lost/mislaid.Surprisingly, on visits to clients’ homes by valuers, high-value assets that are not specified (and therefore not covered) are often identified – simply due to oversight by the client. This could be a painting, a Hermes handbag collection, or jewellery the client has forgotten about. Many policyholders do not realise that a piece of furniture, a tapestry, or some books or antique ceramics are actually very valuable (hence the popularity of “Antiques Roadshow”!)Brokers are sometimes unable to visit clients’ homes due to time-pressure – which means this is a real but unrecognised risk. A home visit by a valuer can mitigate this.
An out-of-date valuation.
Prices for HNW assets can fluctuate dramatically, but at different levels over different time periods (see below). An out-of-date valuation will mean the item is underinsured, leading to underpayment at the point of claim.
A simple purchase receipt.
This may state that £10k was paid for a diamond ring, but does not give enough information to replace it easily. It can also lead to underinsurance – as some collectible items can increase in value immediately after purchase.
Unreliable valuations and receipts.
At the point of claim, an insurer may accept a receipt from Goldsmiths or Sotheby in the UK as evidence of an item having been purchased and owned. They are reputable companies, and the receipt will be in £’s sterling.What if there is an issue or error with a valuation? Does the company providing it carry PI in the UK? Do they have the expertise to correctly value an item? Do they follow industry best-practice standards e.g. FSQS? Are they GIA registered?A receipt or valuation may be from a company in Russia, or India, or Hong Kong. It may be written in that language, with no easy way of knowing whether the company is reliable and trustworthy. Is this a genuine purchase receipt, or could it be a fraudulent, inflated valuation? Even if genuine, it is still an issue for claims teams at the point of claim.What currency is the valuation in? Sterling, US dollars and Euros are currencies which can be reasonably relied upon. But how comfortable is a claims team with a valuation in Russian Rubles or Venezuelan Bolivars, currencies that can fluctuate wildly. What about a valuation in Bitcoin? What value should go in the policy – who decides?

Poor valuations typically lead to underinsurance, difficult claims handling for everyone (client, broker/AR and insurer), and even claims being rejected.

This underinsurance also means GWP can be left on the table for the insurer, and less commission is earned by the broker or AR.

What should a valuation contain?

A professional valuation will provide a comprehensive document that includes:

An overall description of the item, including dimensions and overall condition
For jewellery:
- details of the stone(s), including size and quality. If a stone is certified, the report number and date should be noted within the description, as well as the name of the grading laboratory.
- the metal and overall setting
- any marks (such as hallmarks or maker’s marks)
- a value, which should be dated and confirm the purpose/type of valuation
- confirmation that the clasps and settings of jewellery have been checked. This will help if a “clasps and settings” clause has been applied. It will also reduce the risk of loss or damage overall.

What’s happening in the HNW asset market at the moment?

Values change all the time. The replacement value for something bought 10 years ago will be different to the purchase price (if known). There is a common misconception that antiques have no value – it may be difficult to sell them, but can prove very costly to replace them if damaged or lost.

The costs of restoration and repair have increased exponentially. If an item of furniture or jewellery has been damaged, it can possibly be repaired – but this is likely to be at a substantial premium. It’s not just the time and skill of the artisan you are paying for, their rates, rents, stock and materials have all increased significantly.

Ceramics and glass from the early 20th Century are often overlooked by clients. These items are achieving record-breaking prices at auction – the owner may well not know this, but this can be spotted and a problem avoided during a home visit.

Paintings and artworks often represent some of the highest valued items in a home, yet little regard is paid to ensuring their insurance cover is up-to-date and adequate. The value of art can change/fluctuate significantly, and sometimes overnight (e.g. death of an artist). The value is often linked to taste and fashion – which artists are most desirable at the time. John Constable’s iconic “Hay Wain” was the Nation’s favourite artwork for generations; it has now been displaced by Banksy’s “Girl With Balloon”. How is a broker/AR to know during a client home visit whether the artwork on the wall is likely to be valuable and needs a proper valuation?

What’s the solution?

Clients should be encouraged to get a professional valuation of all their HNW assets done on a 3 yearly basis. If the client is a collector of watches, they should consider reviewing values annually – makers discontinue styles over time, thereby increasing their values.

For many clients, a home-visit is the quickest, easiest, and safest way to achieve this – as the valuer(s) will come to their home at a time of their choice. This helps ensure no potential HNW asset is left unidentified and unspecified.

Ideally, a valuer should be able to value all items (e.g. paintings, jewellery, watches, guns, clothing/shoes/handbag collections), not just some of them. A one-stop-shop service – with the right expert for each area.

A good valuation service will be FSQS registered – meaning they adhere to finance industry-recognised standards. This provides confidence in the quality of the valuation and the safety of customer data. They should also carry UK-based PI in case of a mistake or error.

Brokers and AR’s are critical in the valuation process. The client may need convincing to invest in a professional valuation – they are often not as expensive as many think.

A good valuation service will be happy to do an initial phone call with the broker/AR in attendance to explain the process, why this is so important, and the risks of not being correctly valued. Having the broker/AR at the site visit is also very useful, as it helps cement their relationship with their client, and helps them more fully understand the needs of their client.

Who are Doerr Dallas Valuations?

This article was written by Rachel Doerr of DDV.

Rachel has spent her career specialising in valuing HNW assets, setting up her own business to do so in 2016. The business is FSQS registered, and carries PI of £5m.

Doerr Dallas pride themselves on their relationships with brokers and ARs, and are keen to support them in many ways free-of-charge, for instance:

Quotations, often including different cost options to meet the needs of different clients
Training for staff
Articles for websites and newsletters
Presenters at events e.g. speakers, free valuations at a wine-tasting
Joint phone calls to clients
Reminders when the market has changed and certain items need revaluing

Doerr Dallas Valuations can help eliminate concerns about the correct valuations of a client’s HNW assets in all categories, for clients in the UK and across Europe. The team includes some of the most renowned and internationally recognised specialists in their areas of expertise – including Fine Art, Antiques, Silver, Jewellery, Watches, Classic Cars, Books and Manuscripts, and other valuable collectibles as well as handbags, wardrobe contents and general household contents.

Rachel can be reached on 01883 722736 or 07876653602 and email [email protected]

Back to Life, Back to Reality

Posted on April 28, 2021May 14, 2024 by Doerr Dallas Valuations

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Alastair Meiklejon, Senior Valuer

Back to Life, Back to Reality… Time to Review Home Security and Update Insurance Valuations?
Cobwebs.
Not something I thought I would ever write about, but this week I went to my summer house and caught a glimpse of the fantastic, top of the range Peloton exercise bike that I thought would be a great investment during the first lockdown. My justification was completely sound; “who knows how long this will last, if we can’t go outside then how am I going to get any exercise?” and so it arrived and it was coveted, admired and used extensively for the entire first three weeks of lockdown!

However, and possibly along with the rest of the country I then realised that I was maybe not going to see anyone for a while…was it going to be three months, a year? If this was the case, then why was I worried about my appearance! It was around this time it was also considered universally acceptable to maybe have a glass of wine around 3pm…. So, the lovely Peloton bike was now a rather expensive ugly ornament.

Many people during lockdown have made home improvements, refurbished rooms, purchased new items or even gone so far as to build the office or gym in the garden! Online shopping positively boomed during lockdown.

• In 2020 Global sales of art and antiques reached an estimated $50.1billion, and although the figure is down 22% on 2019, it is still above the 2009 recession low, when sales fell by 36% to $39.5 billion.
• Online Sales proved the big winner in 2020 as, despite overall sales dropping, online sales reached a record high of $12.4 billion, doubling in value from 2019 and increasing from 9% of total sales by value in 2019 to 25% in 2020 – the first time e-commerce sales exceeded that of general retail
• 90% of HNW collectors visited an Art Fair or Gallery Online Viewing Room in 2020

As for us, we were on first name terms with our local DPD driver who was bringing items from John Lewis pretty much on a daily basis, and whilst I had never even looked at a KitchenAid mixer before, I now knew it was my destiny to own one and it would somehow make this lockdown better. The similar fuzzy logic that was applied to the purchase of the Peloton bike.

So fast forward to today…
We are all gradually getting back to some form of normality, and as we all leave the house for longer periods of time and some of us return to our workplaces, we should not neglect home security. We need to remember to be vigilant and always think about ‘what the window cleaner can see!’

In some areas, burglary was reduced by up to 60% during the first lockdown (Source BBC) and whilst we could only hope that those figures will remain, the unfortunate fact remains that with increasing unemployment, they probably won’t.

• Lockdown and Covid means that Valuations are more than ever needed
• Overall sales figures might be down, but prices are not
• Valuations are still vital if a client wishes to be fully covered

So are the figures that you or your client have for home contents accurate, or do they need an up-to-date valuation? Is it time to review assets? To ensure home contents and valuables are correctly valued, so that you are protected and fully covered in the event of a claim?
We think so…

The Importance of a Professional Jewellery & Watches Valuation

Posted on February 11, 2021November 2, 2022 by Doerr Dallas Valuations

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If you have never needed a valuation completed, the cost is not as much as one might think and the easiest way to find out is to ask for a detailed quotation. As we charge on a time basis, all we need to know is the number of pieces, briefly what they are and your location.
Why do you need a valuation?
If you find yourself in a situation whereby you suffer a loss and need to make a claim on your insurance, the first questions you need to ask yourself are;

1. Can I show what the item was and that I owned it?
2. Do I have a detailed listing or the original receipt and a photograph of the item?
3. Do I know the value of the piece?

The easiest way to protect your jewellery in the event of a loss or damage is to insure it for its true value which will require a regular and up-to-date valuation. So, in the event of a loss you can provide your insurer with all of the above details easily and with as little fuss or inconvenience as possible.
A valuation will provide you with a document giving you a detailed description of the item(s), to include details of the stone, size, metal etc… and providing a value. If the diamond is certified, the certificate number should be noted within the description, as well as the name of the grading laboratory. It should be dated and also stated exactly what type of valuation it is. For insurance purposes, you will be looking for a value that will enable you to replace your treasured piece. Our specialists will always discuss with you about how you would choose to replace the item in an event of a loss. Many insurers apply a ‘New for Old’ replacement clause to Jewellery and Watches however if your ring is antique or obsolete our valuations will reflect this within our report and base of value on either a second-hand replacement value or secondary market replacement. We also check all clasps and settings of your jewellery as many insurers have a ‘Clasps and Settings clause’ in their policies which you may not be aware of until you suffer a lost.

Asprey. A three stone diamond ring
Value in 2005 – £26,000
Value in 2012 – £33,000
Value today – £54,500
Insurers may only ask you to provide a valuation for items over £20, £30 or £50,000 depending on the insurer – however, we always ask a client if they can provide ownership, show what the items were and values in the event of a claim. This is always a ‘no’ in most cases… so, what happens in the event of a claim?
Without a valuation, insurers often use claims management specialists to try to find the value of jewellery after it has gone – an unsatisfactory process known as a post-loss valuation. Valuing something after you have lost it often results in an under-assessment of the lost item’s true value or not having your claim paid at all. We are asked to review photographs on a regular basis of jewellery that has been stolen, asking us if we can value it post loss, unfortunately without being able to see the piece and examine the piece we cannot provide a value.
Often this is a very distressing time which could have been avoided with a professional valuation.
So, when you need your jewellery and watches appraised, you can put your trust in us to look after you.

A diamond Solitaire ring
Purchased 1999: £15,000
Valued in 2010: £22,000
Algorithm calculation £23,552 (index linked value insured for!)
Correct Value: £40,750
Our valuations follow a successful method that works by being an in depth, and cost effective process; Our specialist will attend your home – all of our team have formal qualifications and substantial experience within the industry and provide a friendly and professional service. Our team of administrators will look after you from the point of contact to you receiving your report within 15-20 days of your appointment.

Patek Philippe. A Nautilus 40th Anniversary Limited Edition Flyback Chronograph watch
Value in 2016 – £ 75,000
Secondary Market value – £400,000+ (now discontinued)
Now more than ever it is so important that your jewellery values and listings are up to date with your insurance company.
Once you have a valuation completed by us, we hold this information on our secure database, so in the event of any loss we assist you with your claim and provide an up to date value, which will ensure you receive the correct compensation enabling you to replace your item.
The most important reasons for a valuation are;

• In order to be fully insured, your jewellery needs to be listed separately on your Home Contents Policy with a broker who offers a bespoke policy.

• When you need to claim the valuation will provide you with

o Proof of ownership
o A detailed description of the item
o Proof of value

Without them you may end up with an unfair settlement, and no way of proving it.

• The valuation reports will increase your chances of successful recovery by the Police and addition to any registers.

Graff. A ruby and diamond Lotus pendant and earrings
Value in 2015 – £102,740
Valued today – £135,000
Like all markets, the price of silver, gold and diamonds go up and down as do the costs of manufacturing. All diamonds are traded around the world in US dollars, so exchange rates also affect todays values.
We strongly recommend a valuation is updated every 3 years however, if you are a collector of watches you may want to review these values annually as we have seen many makers discontinue certain styles which can increase their values.
Finally, always ensure you are using a reputable company when having a valuation completed and ensure you receive a copy of their Terms and Conditions of Business and they have at least £5m Professional Indemnity Insurance which is an industry standard.
Call us today for a quotation on 01883 652402 or email [email protected] and speak with Rachel. Our specialists cover the whole of the UK and Europe.