As we move towards an increasingly cashless society, it's no surprise that thieves are turning their attention from money and wallets to jewellery and watches.
But even if your jewellery is covered by a contents insurance policy, the full cost of replacing it might not be.
The rise in gold prices
Figures from The Royal Mint show that gold prices have continued to rise significantly in recent years, with investor banks such as JP Morgan citing ongoing geopolitical risks, and investor demand, as two key reasons why, overall, the price of gold is likely to continue to rise. The knock-on effect is that your gold jewellery could now be underinsured.
Consider the various items of jewellery you already own. Even though you may think you know the value, prices may have risen. Remember, if your jewellery is undervalued, it’s likely to be underinsured, which will not only delay your claim but could also reduce any payments.
Get your jewellery valued
If you took out your insurance several years ago, it may be a good idea to get your jewellery re-valued, so you can make sure you're properly covered. That should give you a decent guide to the level of insurance cover you'll need.
The National Association of Jewellers (NAJ) has a list of qualified, registered valuers. They can look at individual pieces or even come to your home and assess your whole collection. Remember to take photos of each item and keep a copy of your valuation safe.
Find a valuer on the NAJ register.
Choose the right insurance cover
Once you've had your jewellery valued, check to see if your current contents insurance is enough. Here are a few key things to look out for when you check your policy.
- Sum insured
Your contents insurance policies may have a 'sum insured'. If the value is less than the total cost of your contents, including your valuables, then your cover may not be enough to replace your jewellery collection. To avoid disappointment, it's important to find this out before you need to make a claim.
- Valuables limit
Within your contents sum insured there's a valuables limit. This is the total amount payable for all your valuables (including jewellery). If this isn't updated, you could risk being underinsured.
- Single valuable item
There's also a limit for a single valuable item or piece of jewellery. If you own something that’s worth more than the single item limit, you'll need to specify it on your policy to make sure it's covered for the full amount.
- Personal Possessions cover
This is included with some insurance policies, while others offer it as an optional add-on. It’s to help cover the cost of jewellery if it’s lost, stolen or damaged while being worn outside the home.
Increasing your cover will add to the cost of your insurance, but you'll have peace of mind that you're fully covered.
Three ways to keep your valuables safe
- Fit a house alarm to help deter burglars.
- Keep your jewellery hidden - a box or items left on a bedside table is the first place a burglar is likely to look. If it's on show, a burglar's also likely to steal more than one item as it's easy to carry and sell on.
- Lock away your expensive jewellery in a safe with the correct 'cash rating' value. To find the right one for you, multiply its cash rating by 10 to get the maximum value of items that should be stored away. For example, a safe with a £5,000 cash rating is suitable for protecting up to £50,000 worth of jewellery or valuables.
