January 2008
Please note that our primary Registered Valuer Mrs Cathryn Richardson will be valuing customers jewellery on Fridays from now. Items to be valued should be deposited with us during the Tuesday to Thursday prior to her visit. The appraisal and valuation will be done in house on the Friday and available for collection Friday afternoon onwards. The administration work will be completed for early the following week. Should there be no work booked in for her Mrs Richardson will not travel over.
Statements of Opinion on lost or stolen items will be available throughout the year by Geoff Thomas.
Valuation for Insurance, and the Financial Ombudsman's "repair,replace or cash?"
Let me paint an awful scene - you've been robbed, and a person is helping the Police with their enquiries. You are asked to go to the station to identify your jewellery. You say that those pieces are yours - that person says that the pieces are theirs. There is no evidence that the person robbed you.
How do you prove that they are yours and so stop the items being handed back to that person at the end of the police enquiries?
The answer is to prepare a list your valuables, and a good tip is to photograph or take a photocopy of them. Then write down details that will help identify yours from similar items. Measure and record size and on gemstones record them to within 0.1mm. Record numbers, record hallmarks, and give detail of the condition of the pieces.
In this scenario if you turn up with EVIDENCE to the police station not only will you have a strong likelihood of recovering you jewellery - your evidence may seriously help the police with their enquiries.
Appraisal
Essentially that evidence is what we provide in an appraisal and valuation. The Appraisal is a detailed professional examination of your jewellery, sufficient that if the item were recovered after loss it could be returned to you.
The current valuation is the final specialist input. How much is the thing worth. That is where our experience, contacts and extensive records come into play. Further another competent valuer would be able to ascribe a value to the unseen item in years to come.
Thomas's valuation provides a basis for an insurer to pay out in the event of loss, and for you to insure the goods for a sufficient value that will compensate you for the loss, when your goods are replaced.
Please note several aspects to the above sentence.
In the event of loss: you only know you have good insurance when it comes to the settlement of your claim. So make sure you fully realise what your insurer is insuring and what they think will happen once the loss has occurred
Compensate you for the loss: Once the emotions of being robbed have passed and you can reflect on the actual replacement item - rather than the sentiment associated with the original - you should not be worse off, nor better off.
The Insurance Industry Ombudsman has made a ruling about replacement, it is very important that you have read it in detail and have a copy to be able to present your case. Get report. I know this will help if you are determined.
Comment on replacing jewellery
In my experience of over thirty years in dealing with people who have suffered a loss either accidental or from theft, it is often better to start afresh looking at items of jewellery that are suitable for your lifestyle today. You will understand even if the replacement item looks exactly the same, you know deep down that it is not the same, and the memory lingers on. That's why the replacement charged to the insurer should compensate you, rather than impel you to try to replace a fashion item that may be twenty years out of fashion and unavailable as new.
Goods are replaced: if you expect cash you are likely to be disappointed, when it is possible that the insured goods can be replaced, the insurer could argue that the disposal price at auction would be the money replacement - compensating you for the money you would have got had you sold it. That will take into account the fact that it is second hand, that the goods where not in new condition. How little would you pay for someone else's old ring one that is not of your choice 25%-35% of the replacement new, probably not even that unless you could sell it on at a profit.
So you are likely to agree to replace the jewellery. Be very careful here. Replace the jewellery at your family jeweller, or the shop you prefer? OR, REPLACE AT YOUR INSURER'S PREFERRED JEWELLER?
Insurer's have preferred jewellers - preferred because they get the jewellery at very discounted prices. But if the discount has been put on to take off you would loose out. The ombudsman makes it plain that policyholders should be allowed to choose where they purchase the replacement.
The insurer hardly ever queries the valuation you send in at time of submission - it is only when the loss occurs that they want evidence, to double check the current value. To minimise their loss by sending you to someone who will sell them the goods cheaper that the insured value. There is an industry of firms advising the insurer.
Comment. Please remember - you are the customer: if you have acted legitimately, and have suffered a loss that your contract (policy) requires the item to be replaced, then you should be able to go to the jeweller you have faith in, and have a relationship with, rather than where your insurer's or loss adjuster, or claims advisor sends you.
Of course if, lets make that a big IF, your contract specifies where you are to shop, then you should check those places out before you agree to the contract, it might encourage you to move insurer rather than move jeweller!
Topical Tips
Make sure that you have sufficient insurance in your pool of valuables to cover all your jewellery - not just the items over the specified amount.
Read the insurers requirements - do you need to specify items over a set limit, that may be £500, £1000 or in some cases £5,000.
Don't confuse the item limit with your total cover.
Ask the insurance seller what happens - in detail - in the event of a claim when buying the policy and make a note of the comments on the proposal form, and take a copy of it.. Remember why you are insuring - to get the replacement and that includes the "where from" in the form you will accept.
Do discuss the valuation in advance with the valuer - a great deal of the work is to do with your attitude towards pieces. Maybe you only want to get compensation based on the disposal value. You may require that the piece is recreated and a facsimile produced rather that the basis we might be using of from a jewellers shop current stock. You may want to insure for the lower second hand value rather than new. The main point is to communicate your wishes, and we will then take that into account in ascribing the value to the carefully appraised item. Then communicate your wishes to the insurer. If they don't give what you want try another insurer.
Valuation for Probate
When you have to settle an estate on which there will be inheritance tax to be paid, or if there are special terms to a will you may need to provide evidence of the disposal value of the jewellery. The disposal value is that the goods would sell in their current condition at an open auction.
Do not confuse the values with Insurance Replacement with New, they are very different.
Registered Valuer (RV)
Jewellers of standing have been able to register with the National Association of Goldsmiths (NAG). They are required to submit evidence of the standard of work, and to agree to terms for valuation work and a disputes procedure. Each RV is allocated a reference number, and you can check to see that they are still registered by examining the certificate displayed in the shop, or by contacting the NAG directly. RV is not a qualification, it is a registration.
Thomas's have three Registered Valuers,
Judy Thomas BA FGA, (RV 14487)
Geoff Thomas FGA DGA PJ Val Dip (7) (RV 14387)
Mrs Cathryn Richardson FGA DGA (RV 48088)
Professional Jewellery Valuer's Diploma
The National Association of Goldsmiths aware that there was a need to bring about a higher standard of valuation work created a course with examinations. Candidates are required to demonstrate their knowledge by five assignments. The Examination requires competence to avoid the common pitfalls that can trip Valuers under pressure. PJ Val Dip is a qualification; regrettably there are fewer than 10 in the UK at this time.
Mrs Richardson is one of the tutors for the PJ Val Dip course, and the NAG have yet to figure out who examines the tutors and examiners so that they can become PJ Val Dips.
Sentimental Value
You must come to terms with your insurer if you wish to value and pay premiums on a basis higher than the intrinsic worth.
Valuation Fees
For Insurance we charge a basic fee of £16.00 plus 1¼% of the total value.
For Probate we charge a basic fee of £16.00 plus 2½ % of the total value
For revaluation based on a recent (up to 5 year old) Thomas's valuation or recent Thomas's sales voucher, we charge £16.00 plus 1¼% of the change in value. This low fee is designed to encourage up to date valuations which the insurers expect. Replacement values of jewellery can go up and go down.
Insurance
Thomas's are not in competition with the several excellent local insurance brokers.
In the event that you are one of our customers and would like for some reason an introduction to a Lloyd's Broker for either home and contents or jewellery only we have introduced a number of customers to our own people - Jewellers need very good insurers.
Insurers and Claims departments
Thomas's operate the direct billing scheme. This enables you, the insurer, to instruct us to let your clients acquire their replacement goods from Thomas's but send the bill to you for payment. This avoids your client having to pay up front and then claim from you - an improvement to your client service. This requires you to send us your instructions.
While we do operate a settlement discount to our regular claims managers and loss adjusters, please note that our discounts are based on true shop prices and are not boosted to give bigger percentage discounts. Please compare the actual price paid against the same product and you will finds us very fairly priced. Who is fooled by that today anyway?
Thomas's of 36 Sheep Street, Skipton, North Yorkshire are here to help you find a replacement, we hope with our help that issues between you and your insurer are settled fairly by both parties.
EXPERT WITNESS
Mrs Carthryn Richardson acts independantly as an expert witness for several Police Authorities in England and Scotland.
