Is your jewellery covered by your home insurance?

Do you know if your jewellery is covered by your home insurance? Even if your jewellery is covered, that may not cover the full cost of replacing it due to the ever changing price of precious metals and stones.

The price of gold, other precious metals and stones

The changing price of gold, other precious metals and stones, means you could be underinsured when it comes to your prized gold and silver jewellery.

Suppose you bought an engagement ring last year for £2000 and insured it for this value. If the price of gold has increased, you could find that the ring’s value has also increased, possibly leaving the item underinsured. This means your insurance may only pay out its insured value, not what it’s worth today.

Valuing your jewellery

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 it’s properly covered. This 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.

Find a valuer on the NAJ register

Get the right insurance cover

Once you’ve had your jewellery valued, check to see if your current contents insurance is adequate.

  • Most insurance policies have a sum insured. If this is less than the total cost of your contents, including your valuables, then your cover may not be enough to fully replace your items should you need to claim.
  • Within your contents sum insured there is a valuables limit which is the total amount payable for all your valuables, including jewellery. If this is not updated you could risk being underinsured.
  • There is also a limit for any one valuable item. If you have a valuable item or a piece of jewellery that is worth more than this 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 can rest assured that you’re covered for their full value.

Keeping your valuables safe

A jewellery box on your dressing table is the first place a burglar will look, so keep it hidden.

Locking away your jewellery in a safe – with a suitable cash rating value – can protect your most expensive pieces.

Make sure your house is alarmed to give yourself the best chance of holding on to family heirlooms and expensive pieces.