The Wire: Winter 2019 – A quick guide to protecting your home, your assets and their value

A quick guide to protecting your home, your assets and their value

When was the last time you had your assets valued? 

An accurate up-to-date valuation gives you peace of mind that your important possessions and household items are correctly insured, so that any settlement accurately reflects the loss or damage caused in the event of a claim. 

One area where this is particularly important is watches. So, we asked experts Doerr Valuations to share their thoughts and this was what they said. 

78% of clients are underinsured 

“Many years of valuation experience have shown us that more than 78% of the clients we visit are underinsured with the consequent risk that any claims for damage or loss might be only partially met. 

An accurate and up-to-date valuation provides the comfort of knowing that valuable possessions and household items are correctly insured and could also expedite settlement. 

Watches are just one area where it’s important to maintain up- to-date valuations. They are highly collectable, take up little space and incur no Capital Gains Tax. As such, they are becoming increasingly popular as an investment option. 

We were recently asked by a broker to undertake a review of a client’s Rolex collection. The increases in valuations of these watches clearly illustrate how the volatility in market values makes the necessity for regular insurance valuations essential. 

This lively appreciation in value is not just at the high end of the spectrum but is impacting even the most basic models too. Here are three examples of how watches can appreciate in value, and why you need to regularly update your insurance valuations. 

Gentleman’s steel Oyster perpetual bracelet watch 

Value: 

  • £1,970 in around 2000 
  • £3,600 in around 2015 
  • £4,100 today – a 108% increase since 2000 

Gentleman’s steel Oyster perpetual Submariner bracelet watch

Value: 

  • £1,450 in around 2000 
  • £4,500 in around 2015 
  • £5,750 today – a 296% increase since 2000  

Gentleman’s 18 carat yellow gold Oyster Cosmograph Daytona bracelet watch

Value: 

  • £10,500 in around 2000 
  • £23,060 in around 2015 
  • £27,650 today – a 163% increase since 2000 

Other ways you can protect your assets and ensure your insurance claims are watertight 

Regularly valuing assets is one way of ensuring the amount of insurance is fit for purpose and can help expedite settlement of any claim. Just as important as the right level of cover is having the right type of cover, the right advice and being able to evidence ownership of your assets. 

We regularly work with experts in this field, including the likes of Lockton who, like us, are exclusive partners to the Porsche Club of Great Britain. Here are three more tips to help protect your assets: 

  1. Concentrate on valuable items – Photograph valuable items such as jewellery against a ruler to ensure you have a clear record of each item; very useful in the event of a claim.
  1. Take photographs of each room – Clear photos help ensure you don’t miss anything in a claim; and backup photos on a hard drive out of the house or in the cloud in case of fire, flood or theft. 
  2. Have a safe – If you live in a valuable property, any thief who breaks in will pull your home apart expecting to find a safe. So, it’s a good idea to have a safe in your home, even if it’s either a) empty or b) a decoy. If a thief can’t find one, they will likely keep looking until they do.

Make sure you update your valuations and photos regularly 

So ensure you regularly update valuations and photos regularly so that you are not underinsured and to help with a speedy and stress-free settlement. 

To find out more information about either valuing or protecting your assets or home, please get in touch with your adviser, send us a message via HFMCWealth.com or call us on 020 7400 4700 and we will be more than glad to put you in touch with the relevant partner for your needs. 

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