Is your jewellery covered by your home insurance?

The price of gold is rising fast, and with it the number of burglars targeting precious jewellery.

But even if your jewellery is covered by a contents insurance policy, that may not cover the full cost of replacing it.

At Churchill we’ve seen the number of jewellery items stolen in burglaries rise by 14% in the last couple of years.

The rise in gold prices

At the heart of this is the rising price of gold.

Figures from the BBC show gold prices have risen by more than 50% in the last year and silver is more than 9 times more expensive than it was in 2001.

This means that you could be under-insured when it comes to your prized gold and silver jewellery.

Suppose you bought a solid gold wedding ring last year for £500. With the rise in gold prices, the same ring would now cost you £1,000. But if you’re only insured for what you paid, that’s all your insurance will cover if it was stolen.

And in most cases, a burglar won’t just take one item. So if one piece leaves you £500 out of pocket, think how much you’d have to pay if they took your entire collection.

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 you’re properly covered. This should give you a decent guide to the level of insurance cover you’ll need.

The National Association of Goldsmiths (NAG) 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 NAG 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 ensure it’s covered for the full amount.

Increasing your cover will add to the cost of your premiums, but you can rest assured that you’re covered for their full value.

Keeping your valuables safe

With burglaries on the rise, it’s never been more important to keep your jewellery 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.