Churchill magazine

Is your jewellery covered by your home insurance?

Updated on: 24 February 2021

Gold ring

As we move towards going more cashless in our everyday lives, it's probably 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 BBC show gold prices have been rising since the Brexit referendum was announced in 2016. The knock-on effect of this means your gold jewellery could now be underinsured.

Look at the various items of jewellery you already own. Even though you may think you know the value, prices may have risen since you last had them valued. So, if they're undervalued, they're underinsured, which will not only delay your claim but could also cancel out your policy.

Get your jewellery valued once a year

If you took out your insurance more than a year ago, it's 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. 

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.

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.

There's also a limit for a single valuable item or piece of jewellery

If this is 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.

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 other 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/valuables.

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