Following Brexit are you now under-insured?
The UK’s decision in June 2016 to proceed with Brexit was a momentous moment that has caused much uncertainty.
One area that you may not have realized has been affected is the jewellery market.
Rolex price increase
Rolex have introduced a 10% global price increase that has recently come into effect and been applied across all watch models.
A number of other jewellery manufacturers have also taken a similar step. These steps have been taken due to the post Brexit impact on the exchange rate in an effort to close the gap between UK prices and those in other major markets.
The dramatically weakened pound following the Brexit vote in June allowed visitors to the UK to stock up on luxury watches at prices often 25% lower than in their home countries.
However, the 10% price increase will not compensate entirely for the fall in the value of the pound, meaning that the UK will remain highly competitive unless the currency rebounds.
How is insurance affected?
Due to these price increases, you may find that if you are lucky enough to own a Rolex watch it’s value may be higher than you expect.
This is important when it comes to insurance as you may find the valuation you have provided under your policy is no longer sufficient and this could prove highly detrimental if you needed to claim under the policy.
This value increase is not limited to Rolex watches however, so we would therefore recommend that you seek a new valuation for ALL items of jewellery to ensure that your insurance adequately covers your needs.
If you would like to discuss this further, or make amendments to your policy, please do not hesitate to contact our office.