Rising metal prices outstrip cover

Press, 25 February 1980, Page 4

Rising metal prices outstrip cover

‘gold silver 1 'j« may have out- i p 'nirtd' th e insurance ’ wlr many people have ] „ Seir valuables, accord- < ' Yg to insurance industry warned that com- i B'llinies could only pay out ■ maximum of the sum : insured, taking no account world price movements. ■’ ® f This meant that those who did not regularly re- ‘ £iew value of jewelier y and Other items of v? precious metal and altered '• their cover accordingly, could be shocked if they had to claim. . . a quick survey of insurance offices in Christchurch showed that many policy-holders were aware if the danger. - But, the companies were Concerned. that many others were not. K Soaring gold prices over

the last 12 months meant the price of an ounce on February 16 was $6BO, 189 per cent higher than that date a year earlier. For silver, the jump in price has been 400 per cent. The price. of an ounce on February 16 was $36. Insurance companies which got in touch with pol i c y-holders through representatives were better placed to remind them of such inflation, said Mr P. E. Goodman, a supervisor for one firm. A spokesman for another insurance firm said clients who did get their jewellery revalued were often shocked at the increase. Like other companies, this firm offered a general householders’ and personal property policy which re-. quired that all items over

a certain figure must have their value specified. Another firm had a liniit of $4OO on the value of a single item which could be covered in a general policy, said a spokesman. Any item over that had to be valued separately. He said it was a matter of concern that people neglected to “update” all types of insurance in view of inflation. Mr T. E. Roberts, the executive director of the Insurance Council, said rising gold and silver prices were only part of the inflation which some people tended to overlook when insuring property, particularly household contents. Such oversight was “even more important and even easier” in the case of precious metals, he said.