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Underinsurance of Jewellery, How it All works!

Updated: Jun 23, 2020

The recent depreciation of the currency ZAR / USD has increased the prices of jewellery and diamonds in South Africa. With a recent total of 25 Appraisals done, we observed an average increase of 35% in the value of jewellery appraised less than two years ago.


What will this mean for your insurance? it will mean under insurance!


Under Insurance is a principle of average that insurers apply when acting on insurance claims.

A jewellery item purchased for R5,000 in year 1 will be sold for R10,000 in year 10

If that item is specified in year 1 for R5,000 when the policy is underwritten and the same item is never appraised again, it will still be specified on the policy for R5,000 in year 10 and only R2,500 will be offered towards replacement cost.


Explained as follows:

When the item is lost in year 10 and replaced for the then market value of R10,000, the insurance average ruling will be applied.

Calculated :

R 5,000 = 50% of R 10,000

50% of the specified amount = R 2,500


In year 10, the agreement of loss offer will be = R 2,500 meaning only 25% of the actual replacement cost will be settled by the insurer.


It is advised to have your jewellery portfolio appraised at least every two to three years.

Contact us today for a discreet appointment to appraise your jewellery portfolio.

No items are taken in, physical inspection done in your presence.




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