Page 29 - Delaware Medical Journal - February 2018

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substantiate the value, and create a description used in the event of a loss. If and when a loss occurs, certain specialty carriers offer clients 100 percent of the insured value, without requiring any deductible or factoring the effects of depreciation.
USI’s risk assessment process includes
a review of the policy and underwriting requirements, as well as valuation clauses in the policy. The personal risk team can also advise the client on frequency of appraisals
Additional protection for scheduled items is available in the form of a market value endorsement, which provides coverage
if the market value raises the cost of replacement above the scheduled limit. Factoring in market conditions can be very critical with high value pieces, such as precious stones, gold, or silver, which can appreciate by more than 25 percent during a policy term.
CUSTOMIZED SOLUTIONS FOR JEWELRY
Jewelry, which tops the list of valuable articles most likely to be lost or misplaced, is a frequently scheduled item. Customized coverage can be designed to cover high value jewelry, such as engagement rings and wedding bands, from accidental damage, disappearance, and theft.
According to USI’s personal risk advisers, the cost of jewelry has gone up over the last several years and so has the volume of lost and stolen jewelry. In fact, $1.5 billion of jewelry is lost or stolen in North America each year.
Take the case of a policyholder who lost his Rolex Yachmaster 18-kt gold watch
in the restroom of a New York City restaurant.
The insured, who was dining with friends, took his watch off and placed in on the side of a sink to wash his hands. An hour or two later, after realizing that he had left the watch in the restroom, he went back to the restaurant, but the watch was nowhere to be found.
Fortunately, the insured had recently scheduled the Rolex on his policy for less than $500 annual premium and as such, was paid the scheduled value of $33,000. Had he not scheduled the watch, the homeowners’ policy sublimit of $5,000 would apply, minus his deductible, and his out-of-pocket expense would have been $28,000.
BEST-IN-CLASS STRATEGIES FOR VALUABLES
Valuable article policies differ by carrier in terms of requirements and exclusions. As such, working with a risk management partner who understands the valuables insurance space, especially the different coverage types, policy limits, and restrictions, is essential.
For example, it is important to know if a valuables policy would pay a percentage more than the amount schedule as protection against price appreciation. Again, this is critical given how rapidly the value of precious metals can change within a relatively short period.
Certain policies require jewelry appraisals to be kept up to date and provide the
In some cases the policies will require appraisals for items with values that
are as low as $5,000 and as high as $50,000. Generally, while it is best to
basis, USI recommends that in times of market volatility, clients should consider updating values more frequently even if it is not required by the carrier.
Collectors and owners of valuable items should consider the following additional information concerning insuring valuables:
• Certain carriers offer discounts for valuables kept in a safe or vault.
• Some insurance carriers restrict coverage items while in transit and order to retain full coverage.
• In situations where a lost item is part of an itemized pair or set, such as earrings, certain specialty carriers will provide coverage for the entire set if they are provided with the remaining pair.
• Transporting insured collectibles

handling to avoid suspending coverage. USI experts can assist with vetted resources, including professionals
who specialize in transporting insured collections.
Ultimately, the most important advice from USI’s personal risk specialist team: Don’t leave coverage for your valuables up to chance.
Work with a knowledgeable personal risk services professional on how to best protect your collection. The investment will pay off when you need it most.
CONTRIBUTING AUTHOR
■ KATHLEEN KENNELLY is a personal risk specialist for USI Insurance Services.
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