Jewelry, high-end watches, works of art, and collectibles often remain with their owners for many years. During this time, not only do personal circumstances change, but so do the values of the insured items. New purchases are made, the value of existing items increases, and it is not uncommon for the last review of the insured amount to have taken place several years ago.
Unfortunately, the importance of regular updates usually only becomes apparent when a claim is filed. In recent years, the number of residential burglaries has risen significantly, and after a burglary, the question often arises as to whether the valuables on the premises were adequately insured and whether all relevant information was fully incorporated into the policy.
Burglary claims, in particular, highlight a fundamental risk: An insurance policy can only cover the values that are known and were taken into account when determining the sum insured.If new acquisitions, increases in value, or changes to the inventory are not reported, this can lead to underinsurance or insufficient compensation limits in the event of a claim.
We also know from our claims experience that, particularly in the case of jewelry, watches, works of art, and collections, the actual values often exceed the originally agreed-upon sums. Furthermore, security requirements—such as those for safes or burglar alarm systems—play an increasingly important role in insurance coverage.
Our Recommendation
Check your valuables regularly and make sure they match your current agreed-upon insurance coverage amounts. You should review your existing insurance coverage especially after making new purchases, receiving inheritances or gifts, or experiencing significant increases in value.
If you have any questions, we are of course happy to assist you.
