What does your 'new for old' insurance policy REALLY mean?

One of the services that we offer here at de Marsac is written jewellery valuations that can be submitted to your insurance company to aid you should you need to make a claim.  Whilst we have been encouraging clients to update their valuations recently in line with the sharp rise in the prices in gold and precious stones, there is another element to the insurance story that is well worth telling:

A practice very common amongst insurance companies, but little known by the consumer, is that of negotiating discounts with certain jewellery suppliers or shops - a discount that isn't passed on to the claimant but can tie them into choosing their replacement item only from the retailers on the approved discount list.

What this means for the poor soul who has lost or broken their beloved ring/earrings/necklace is that rather than being able to return to the independent jeweller from whom they bought their original item and then simply reclaim the replacement costs, they could be issued with a voucher to spend at the insurance company's preferred retailer - sometimes then leaving them with an item worth a lot less than the original piece.

The best way to combat this is simply to look at the small print of your policy or speak to a independent insurance broker as they will be able to advise you about policies that offer suitable coverage for the value of items that you own.