The True Cost of Underinsurance

Posted on April 7, 2026April 9, 2026 by Rachel Doerr

Underinsurance is one of the most common risks facing homeowners with jewellery, watches, silver, art, furniture and general contents. When valuations fall out of date, you may not have enough cover in place to replace what you own.

Failing to review valuations regularly can lead to serious financial and practical consequences. Around 89% of people we see show some level of underinsurance across their current sums insured. In many cases, the gap has grown over years without them realising.

Jewellery is particularly vulnerable to underinsurance. Diamonds, gold and branded pieces have seen strong value increases, often linked to how long the item has been owned. An engagement ring bought for £4,000 in 2016, for example, may now cost around £25,000 to replace. That increase alone can push the piece beyond your policy threshold for unspecified items, often known as the Single Article Limit.

Underinsurance becomes a problem at the point of claim. If values are outdated, insurers may only pay the amount listed on the policy or up to the single article limit, which can sit between £2,500 and £5,000 for jewellery. This may not be enough to replace or repair the item like for like. In some cases, underinsurance can even lead to reduced settlements or declined claims.

A current valuation helps avoid underinsurance and supports a claim being settled quickly and smoothly. It provides proof of ownership, accurate descriptions and photographs, all of which help insurers confirm value without delay or dispute.

Insurers often require evidence of value at the start of a policy. This includes detailed descriptions, supporting documentation and images. Without these, underinsurance risks increase and claims can become harder to validate. Insurers may need extra time to verify details, question the value being claimed or decline part of the claim if the item cannot be substantiated.

This may not feel significant when thinking about a single item. But in the event of theft, fire or water damage, underinsurance can affect multiple possessions at once. Claims can run into thousands of pounds and require proof of ownership and value for each item. Many people rely on old receipts, which may not clearly describe what was purchased or may no longer be readable.

A valuation report reduces the risk of underinsurance by acting as formal evidence. It confirms the item existed, that you owned it and what it would cost to replace. It also ensures your sums insured reflect the current market, which is vital when making a claim.

Without this, underinsurance can create additional stress at an already difficult time. Claims may be challenged, delayed or settled at a lower figure than expected, leaving you financially exposed.

Real experiences highlight the impact of underinsurance. One client lost a diamond tennis bracelet originally purchased for £21,850. It had never been added to the policy as a specified item. By the time it was lost, the replacement cost had risen to £68,000. Underinsurance meant the item was not covered at the level needed, resulting in financial loss alongside the emotional impact.

Insurance professionals see the effects of underinsurance regularly. Steve Moores, Risk Management Director at Howden Private Clients, explains: “Underinsurance caused by out-of-date valuations continues to be one of the key challenges our claims team faces when handling jewellery and watch claims. Obtaining proof of value after a loss can be a slow and difficult process. With a current valuation in place, claims can be settled much more quickly, in some cases even on the same day.”

Reviewing valuations is one of the simplest ways to reduce underinsurance and protect what you own. Accurate, up-to-date values help ensure your policy reflects the real cost of replacement and gives you confidence that, if the worst happens, you are properly covered.

Get in touch today to book a valuation of your items on 01883 722736 or email us at [email protected].

The Risks of Unspecified Jewellery

Posted on February 12, 2026February 12, 2026 by Aurélia Turrall

Unspecified Jewellery is becoming more of a concern when we are conducting valuations as it is mostly overlooked by people in their jewellery boxes and forgotten about when it comes to their insurance policies.

With the rise of laboratory grown diamonds found on the market, political uncertainty and sanctions applied by and on various countries, the prices of natural diamonds have taken a tumble. However, it would be naïve to consider that the price tag of these precious gems has not increased in the last 5, 10 or 20 years. From bread and milk to diamonds and gold, no product has escaped from an increased price tag.

If you were lucky enough to get engaged some ten years ago, you may have purchased a diamond three-stone ring, such as the below ring mounted in platinum and totalling 2.50 carats of diamond, for a price tag of £4,000. Having slowly climbed to £6,500 in 2020, in today’s market, that same ring would cost £25,000 to replace.

With many insurance policies requiring items over £20,000 to be itemised you probably don’t realise the cost today of the ring that is on your finger but would be very disappointed if you couldn’t replace it in the event of a loss.

Equally this diamond line bracelet by Tiffany & Co., set with a total of 5 carats, would have retailed for £5,000 in 2010.

Today, Its equivalent from the Tiffany Victoria range, set with 4.25 carats of diamonds, retails for £30,700 – again over the single item on your insurance policy.

Whether you own a pair of diamond earstuds, a bracelet or a ring, and have had the opportunity to wear theses for the last few years but haven’t thought to update your insurance valuations, you could be at risk of being under insured as the prices of precious materials continues to rise as a reaction to geo-politics. In the worst-case scenario, you could find you are not insured atall.

The gold price is currently £3,456.49 (02.02.2026) a troy ounce in 2015 this was £716.37 – so it doesn’t take a genius to work out the prices of jewellery in the last 10 years has increased in value.

At Doerr Dallas Valuations, we are currently recommending clients update their valuations if they haven’t been valued in the last 12-18 months with the gold price being at its highest level in years and if you have never had a valuation please call us to find out more – it doesn’t cost anything for us to send you a proposal but count the pieces in your jewellery box first!

Why Relying on Old Valuations Could Cost You Thousands

Posted on July 17, 2025August 13, 2025 by Annabell Parry and Aurélia Turrall

The Case for Up-to-Date Jewellery Valuations in a Rapidly Shifting Market

Gold at an all-time high, diamonds in freefall, ruby values that look like telephone numbers. Welcome to jewellery valuations in 2025 as the jewellery market is moving and shifting at great speed and it can sometimes be difficult to keep up.

Which is why it is so important you have your appraisals up to date.

The global diamond jewellery market reached £46 billion in 2023, £49.3 billion in 2024 and is set to reach over £90 billion by 2032. Why the continuous rise? Let’s explore a few key areas impacting jewellery value and market trends.

It’s been an interesting year for everyone but for insurance teams that depends on accurate and dependable valuations, then it’s become increasingly vital to work with valuation specialists.

For a private client to ensure your values are up to date and you are not going to have a shock in the event of a claim, a valuation needs to be within the last 24 months.

Look at any jewellery auction across the country this year and every heavy gold piece will have early offers ahead of the auction. Small time gold buyers have sprung up all over the country and are making the most of the increasingly high gold bullion price.

Brick and mortar jewellers are reviewing their prices every three months and this week I received an email from a goldsmith who I regularly use stating;

“All gold prices are estimated at present, we advise that the final bill will be slightly amended due to the fluid nature of the gold price”. To qualify the need for this unusual statement, as I write pure Gold is trading at $2481 per troy ounce. It was $1805 per ounce 12 months ago.

Insurers and their clients need to be reviewing their policies, not just for gold.

Diamonds – What price difference are we talking about?

Comparatively, a De Beers ring set with a brilliant-cut diamond weighing 0.51 carat, G colour and VS1 clarity retails for £5,900. Pandora offers the same diamond, but lab-grown for £825. There’s no denying the price tag is attractive and not surprising that they are projected to represent 25% of the market by 2030.

Another shift is the confidence in online shopping and the rise of E-Commerce. Consumers will spend a great deal more without seeing the item than they did prior to Covid. A recent study showed that online jewellery sales had gone up by 30% during that period.

Art Deco Tutti Frutti bracelet by Cartier – This stunning bracelet came up for sale at Sotheby’s on 28th April 2020 over the course of a four-day sale, online only due to confinement restrictions. It sold for £1 million and set a world record for any jewel sold online and any jewel sold in 2020.

When reputation and trust precede a brand, clients will happily buy blindly. And that is what luxury brands are banking on and it’s working. There is a steady continuous increase in prices each year on the most popular items.

A pair of Tiffany & Co. Victoria diamond earrings have gone from £3,100 in 2003, to £4,925 in 2010, £8,775 in 2021 and up to its current value of £9,125.

There are no signs of slowing down for luxury brands. When it comes to branded pieces, such as De Beers or Tiffany & Co. it still seems to be a safe investment with return on investment definitely worth the waiting for. With values of signed pieces creeping up and diamond markets fluctuating as do the insurance values.

Rubies and sapphires have seen some big increases. If your clients’ purchased sizable gemstones in the 1960’s,70’s,80’s, 90’s ( before excessive treatments became the norm) then these gems are very attractive to the market. There are simply not enough to fill demand.

Interestingly there is far less demand for emeralds at present! But, that could change due to fashion or popularity (if the stars start wearing emeralds, we could see market changes)!

The big question over the next 18 months will be how to value diamonds? Natural diamonds that is.

It is now common knowledge that manufactured diamonds (also known as Lab grown diamonds) currently change hands for about 5-15% of their natural counterparts. If you would like to know a little more as to why this is do look back at some of the previous articles. Manufactured diamonds are here to stay and have found a home in the Bridal and costume jewellery market. This has sent the market for smaller, natural lower quality diamonds tumbling. Why have a lower quality smaller natural stone when you could have a fine colour and clarity manufactured earring set which you don’t mind losing on the beach!

However, the smart minds will be watching the bigger, higher quality natural stone prices. That is diamonds over 3ct, G/H colour and above with a good cut and proportions.

Why? Because these will be in smaller and smaller supply in the coming years – and we are already seeing the effect at the point of sale both on the high street and at auction.

American Tariffs, the Ukrainian / Russian conflict and the Israeli/ Palestinian conflict have interrupted the long-established routes for rough diamond via the cutting centres to the waiting consumer. This is a subject, in its own right, to explore in the future.

There are still plenty of diamonds to purchase in Europe. Despite Americans holding tight onto their precious stocks as increased tariffs mean they cannot competitively purchase at the moment.

The stock of the better-quality stones, so loved by high-net-worth clients, may well start to dry up due to the convulsing diamond industry and therefore those prices will rise. These thoughts have been recently reinforced following published comments from the London diamond Bourse and Diamnet Founder Howard Levine.

This is a defining period for the jewellery trade as rarity, real luxury, taste and craftsmanship will continue to be sought out. These rare pieces, newly purchased or family held, need to be valued effectively and not be confused and undervalued with the mass produced, lower quality pieces.

The need for a valuation – for clients who haven’t had their jewellery values in the last 24 months, they will see a difference in valued and could find any claim could be problematic without one. Applying generic inflation percentages as a tool to update valuations, would be incorrect and inevitably lead to jewellery being under or over insured.

Because jewellery is the product of so many moving parts, it is essential to revalue one’s jewellery collection on a regular basis. Prices may vary several times within a single calendar year and our recommendation would be to get an official jewellery valuation at least every other year. And while your specialist is there, make sure every clasp and setting of stones is checked. A lost stone has monetary value but, in most cases, the emotional attachment to the piece makes the gem priceless and irreplaceable.

General Contents – The invisible problem

Posted on February 26, 2025March 20, 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].

A little light on the diamond markets

Posted on January 29, 2025March 20, 2025 by Aurélia Turrall

The price of diamonds is said to be tumbling and crashing with major players such as De Beers even cancelling sight holdings over the summer due to poor demand. And yet… When I scroll through the big brands, all I see are numbers going up, up and up! So, let’s not panic too quickly and think that all our investments – that is if you’re lucky enough to have been able to invest in jewellery, watches and diamonds – are all collapsing and you’ve lost everything.

The main issue here, and seems to be across the board, is a form of misinformation. The media is quick to react to market trends but doesn’t take into consideration other factors that apply when jewellery is made and then sold. To make a piece of jewellery one needs the raw material, diamonds and gold for example, along with workforce. The only factor in this equation which has dropped are indeed the diamonds. But all other costs keep climbing.

So why has the diamond market slowed down? Which market are we even talking about? Has the jewellery market slowed with the depreciation of diamond?

It does appear that both synthetic and natural diamond markets have weakened. With more companies offering the cheaper option to natural diamonds, it’s no wonder that the synthetic diamond market has plummeted, even with the best marketing. Giant De Beers had indeed noticed the trend would not pick up and decided, in June 2024, to close its synthetic diamond branch “LightBox lab-grown diamond”.

Lab-grown diamonds have almost become synonym of fashion jewellery and De Beers’ strategy was to give natural diamonds their spark back and focus on high-end diamond jewellery. Both markets have slowed, with the synthetic diamond market doing so even more than the natural diamond market. Is it a bad thing? That’s open to discussion: making diamonds more accessible and traceable than natural, but robbing customers of the experience of getting to buy a piece of natural history. There are endless arguments for and against.

But still, why has the natural diamond market also slowed down? That is in part due to sluggish Chinese demand and worldwide geo-political issues. However, the best diamonds, D, Flawless, are still in high demand, as are the bigger carat diamonds. The larger the carat weight the bigger the jump in percentage increase. There is a huge difference between a 1 carat diamond and a 1.50cts diamond for example. With all criteria remaining the same, the increase can be more than 50% per carat depending on the retailer. De Beers are currently retailing a 1ct brilliant-cut diamond G, VS2, for £15,800 and a 1.50cts with identical colour and clarity for £34,200.

Other than for solitaire diamonds of a certain colour and clarity (for example H/I coloured diamonds with a clarity under VS2), when it comes to completed jewellery pieces, the prices do not seem to be declining either. Why? Because couples are still getting engaged, young people are still having “big” birthdays commemorated with diamond gifts. Whatever the reason, diamonds maintain their desirability and durability.

A pair of Tiffany & Co. Victoria diamond earrings have gone from £3,100 in 2003, £4,925 in 2010, £8,775 in 2021 and up to a current value of £9,125.

It still seems good business and good investment to be buying jewellery and diamonds. Though one might need to hold on to a few middle market diamonds until the values pick up again, when it comes to branded pieces, such as De Beers or Tiffany & Co. as we have cited, it still seems to be a safe investment with return on investment definitely worth the waiting for. With values of signed pieces creeping up and diamond markets fluctuating as do the insurance values. Be sure to keep get your valuations updated as you could be under-insured and very possibly over-insured too.

Silver’s Time to Shine: How Rising Prices and Unique Pieces are Reviving the Market

Posted on October 17, 2024November 15, 2024 by Jenny Knott

Over the last few years, the silver market has perhaps been viewed as a rather quiet part of the art market, reliable but somewhat disregarded.

You may remember Woody in one of the later Toy Story movies. Silver, like Woody, is proving that you should never write off something just because it isn’t quite as shiny and new as it used to be. It may well prove to be your best bet as a long-term friend.

It is undoubtedly true that some areas have been stagnant. Life-style changes make it unlikely that we are going to see a revival in the taking of tea from an early 20th century silver tea set, or the use of peppers and sugar casters. However, that only paints a partial picture because nothing is ever completely one-dimensional.

I kilo silver bar.

An article in The Antiques Trade Gazette neatly summarised the situation thus:-

‘The increase in bullion prices can influence antique silver prices in several ways. It can make owning silver appear more attractive as an investment, it can create a sense of urgency among collectors and enthusiasts as prices rise and lastly it can raise awareness of the craftsmanship, beauty, and historical significance of antique silver over other tangible assets.’

There has been much made of the increase in precious metal prices over the last few years. The price of these precious metals is usually tagged to global financial and political stability. The turbulence of recent years has seen a huge increase in the price of some metals, particularly gold. However, this should be counterposed against a reduction in the price of other precious metals notably platinum and palladium. This is largely due to the decline in use of these metals, along with rhodium. These are collectively known as the platinum group metals – PGMs. Car manufacturers have turned to battery powered electric vehicles which do not need PGMs in catalytic convertors causing a downturn in demand, and consequently the raw metal price. For many years platinum prices tracked or surpassed the price of 18 carat gold; at present both platinum and palladium are worth less per gram than 9 carat gold.

A 1962 silver owl mustard pot on sale for £2250.

How does this affect silver?

In September 2019 silver was trading at about £15 per ounce, and by August 2020 it was over £21.60, and as of today it is trading at £23.28. There is much speculation that the price of silver has a long way to rise. Unlike the PGM group metals silver is still widely used in industry, in medical technology, cameras and in the electronics sector in the manufacture of machinery requiring electrical contacts such circuit boards and semi-conductors. What, you may well ask, has this to do with the valuation of domestic silver?

As one silver dealer put it to me recently, much domestic silver is now scrapped to be used to make 1 kilogram bars of silver which are sold to ‘stackers’. These are people who believe that the price of silver will soar when the increasing global demand far outstrips the annual output. What is far more optimistic is a flourishing of rare, novel, ancient, esoteric and unusual pieces. This has seen some stunning prices at auction recently including a set of rare Scottish late 17th century provincial trefid spoons which sold for £13,000 , against an estimate of £3,000 – £5,000, and a stunning George III candelabra centrepiece which made £44,000 at Dawsons last month. This piece had been found in a suitcase under a bed where it had lived for the last 45 years. This is particularly relevant as the auction house revealed that the last insurance valuation has been conducted in 1987. Dawson’s research had partnered it with a similar pair of four branch candelabra sold by Sotheby’s in October 2022. This undoubtedly helped the piece achieve over twice the higher end of the estimate.

Thus, you have high prices because of the inherently high price of silver at the moment, offsetting the lack of interest in some areas of domestic silver; coupled with even higher prices for anything that is a little out of the ordinary or even very splendid as above.

In terms of making sure that insurance values are pegged to the current market, it is worth considering whether good pieces are adequately insured and whether more modest silver may be over-insured. Perhaps some pieces might be better sold if they are only gathering dust in drawers and cupboards rather than being used and enjoyed.

Whatever you decide to do with your silver it is always worth ensuring that you have the best up to date information to help you make informed choices that are right for you and your family.

An American novelty stamp box for sale at Peter Cameron for £425

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.

Under Pressure – The Exponential Growth of Underinsurance

Posted on January 9, 2024March 20, 2025 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 high 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.

Recent classic and collector car market trends mean you’re probably under-insured

Posted on June 6, 2023January 3, 2025 by Stewart Longhurst

Since the full force of the coronavirus pandemic hit in the spring of 2020, we have all experienced unforeseen ups and downs in many aspects of our lives.

Whilst it doesn’t begin to compare to what many people have suffered over the last three years, the classic and collector car market has also experienced significant turbulence and unpredictability in relation to values.

As a result, many classic car owners are very likely to be under-insured with out-of-date valuations and would find themselves heavily out-of-pocket in the event of a claim.

What has been happening in the market?

Having experienced something of a dip towards the end of 2019, classic and collector car market values spiked considerably not long after the first lockdown came into force at the end of March 2020 – according to recently released price index data from the insurer Hagerty.

Stuck at home with little to do and unable to go away on holiday, buyers spent significant amounts of money on classic cars; with the increasing demand pushing values sharply upwards. With physical dealerships closed, online classic car auction platforms with detailed photographs and thorough descriptions provided a low risk route to purchase.

These digital-only outlets, such as The Market by Bonhams in the UK and Bring a Trailer in the US, reported record sales figures during 2020.

As the world went back to work during 2021, average market values cooled a little but the rising cost of living and then the invasion of Ukraine in early 2022 caused higher fuel prices and a more significant dip.

Where are we now?

The first data points of 2023 show that average values in most classic car categories are now well above where they were pre-pandemic.

The category that has performed the best over that period is what Hagerty tracks as their Gold Index. This segment includes top-end collector cars such as the Mercedes-Benz 300SL Gullwing, Ferrari F40 and Ford GT40, and shows an average market value increase of 21.4% since late 2019.

Not far behind on a 17.4% increase is the Hot Hatch grouping. These are the cars that Generation X-ers wanted to buy in their late teens and twenties but couldn’t afford. Now in their middle-age with a greater disposable income, fast Fords and GTIs are being snapped up in waves of nostalgia.

Less than a percent adrift are the Best of British cars at +16.6% and at an 11.4% increase is the Classic category which represents the “everyman” classic cars and by far the biggest slice of the market.

Is your car under-valued?

Based on these findings, there is a very good chance that unless you’ve had your car valued recently, it will be under-insured.

Indices such as those from Hagerty are based on market value averages across a range of models, so it is important to get a valuation not just on the make, model and year of cars that you own but for your actual cars in their current condition and with any particular history or provenance.

Market valuations – what you could expect to sell the car for – are most appropriate for valuing assets for probate, inheritance tax or division of chattels, but you need to value cars differently for insurance purposes.

An insurance valuation assesses what it would cost to replace a car if it were stolen or badly damaged and could include all manner of additional expenses beyond the purchase price of a similar car or just the cost of repair – particularly if the car is a hard-to-find model or requires specialist parts and extensive labour to restore it to your particular specification.

Get an up to date valuation

At Doerr Dallas Valuations, we usually recommend revaluation at least every 2-3 years to incorporate market trends. Never has this been more important than now due to the heavily fluctuating classic and collector car market.

Get in touch with us to discuss how our independent team of specialist valuers can help to make sure your cherished vehicles are properly covered.

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]