How To Insure Your Jewellery

When you select a precious piece of gold jewellery such as a gold ring or necklace, you’ll want to enjoy it for the rest of your life. However, sometimes things do go wrong and your jewellery can end up getting lost, stolen or damaged - no matter what measures you put in place. Though you’ll never be able to replace sentiment, insurance can help you avoid being left out of pocket if you need to replace or repair your jewellery.

Jewellery insurance should be non-negotiable for any gold collector. Whether you’re looking to insure your gold chain or an iced out pendant, it’s important that any valuable piece is financially protected. In this blog, the team at Hatton Jewellers shares all you need to know about insuring your jewellery. 

Why Should I Insure My Jewellery? 

You should always consider insuring your fine jewellery. That way, if your gold gets lost, stolen or damaged you won’t be left facing the financial repercussions. 

Generally speaking, jewellery insurance only applies to high value pieces of jewellery - around £1,000-£2,500 or more. This is because jewellery valued under the single item limit (the maximum amount you can claim on insurance for one individual item) will be covered under your general contents insurance. 

Understanding Your Policy’s Single Item Limit

You should check the terms of your individual policy to find out what your single item limit is. Any item worth more than this amount needs to be either specified on your policy (if it can be included in your general contents policy cover) or covered by a separate policy altogether. 

For example, let’s say your single article limit is £2,000 and your Cuban chain costs £7,000. If you haven’t specified your Cuban chain in your insurance policy and it gets stolen or damaged, your insurer will only pay out £2,000 for the item. In this instance, you should ask your insurer to add the chain as a listed or specified item which - depending on your insurer - may or may not carry an increased premium. 

Insuring Several High-Value Pieces of Jewellery

If you have several high value pieces of jewellery, you’ll need to consider your insurance policy’s valuables limit - this will be either a percentage of your contents value or a specified amount. The valuables limit means you will only be able to claim for a certain total sum of valuables, regardless of whether they fall under the single article limit or if they’re listed separately on your policy. 

If you have a jewellery collection that exceeds your valuable limit, running into the tens of thousands of pounds, you may need to increase your cover or seek out a specialist standalone policy. 

What Does Jewellery Insurance Cover?

Jewellery insurance will cover you for theft, accidental loss or damage - which should also include loss of diamonds or gemstones. Some insurance policies will also cover your jewellery while you’re away from home, such as staying with a loved one or travelling overseas. However, in many cases you may need a Personal Possessions add-on. 

What Won’t My Jewellery Insurance Cover?

Your jewellery insurance won’t cover you for general wear and tear. It’s expected that gold jewellery will experience the odd scratch, so you won’t be able to make a claim unless your jewellery is undergoing full repair work for significant damage. 

Most insurers won’t cover you for misplacement, either. If you have lost your jewellery at home, this isn’t technically classed as ‘lost’ as there’s a high likelihood that you may be able to find your jewellery if it hasn’t gone far! Insurers want to minimise their own risk, and won’t want to pay out for a piece of jewellery that could reasonably turn up again in a few weeks. 

You also won’t be able to claim for the loss of a single earring unless specifically mentioned in your policy. Typically, you’ll need additional matching set cover to insure you against this eventuality. 

When to Insure Your Jewellery 

You should consider updating your contents insurance every time you buy or receive a piece of expensive jewellery, as these items will need to be listed separately on your policy. 

Alternatively, you can seek out a separate high value item insurance policy. This may be an additional upgrade to your existing contents insurance or a specialist type of cover. 

How Do I Value My Jewellery? 

It’s important to make sure you’re insured for the full value of your jewellery - to do that, you need to know what your jewellery is worth. A reputable jeweller like Hatton Jewellers will be able to give you an up-to-date valuation, though you may have received an insurance valuation at the point of purchase.

It’s important to select the right level of coverage to make sure you don’t end up underinsured, which will result in you not receiving the full settlement from your insurer. Your insurer will need to verify what your jewellery is worth before settling a claim - so make sure you never wrongly suggest your gold jewellery is worth less than it is (either by accident, or to try to bring your premium down). If you are underinsured, your insurer will pay out a smaller proportion of your item’s current value or use a ‘condition of average’ clause to settle the claim. Your insurer may void your policy and not pay out at all if they believe you have provided incorrect information deliberately or the underinsurance is extreme. 

If you underinsure your jewellery, you will no doubt end up paying more to replace or repair it as your insurer won’t pay out the full amount. 

While it’s important never to underinsure your items, you should also be mindful not to overinsure either. Overvaluing your jewellery could just end up hiking up your insurance premium for little benefit as your insurer will only ever pay out what your jewellery actually costs to replace or repair. 

Valuing and Insuring Second-Hand Jewellery

It’s likely you will need to insure second-hand jewellery for the price it would cost to replace it with a similar item. Search the market for an item of like-for-like value and insure your jewellery for this amount. 

Keep Your Valuations Up to Date

The price of gold jewellery fluctuates, so it’s recommended you get a fresh jewellery valuation around every two years. This will help keep your insurance policy up to date, making it much simpler to make a claim if you need to. 

It’s also important to keep your valuation up to date to avoid underinsurance. For example, if your gold ring has increased in value without that being reflected in your insurance your insurer won’t pay the full replacement value - only the listed value on your policy. 

Do I Need Separate Engagement Ring Insurance? 

It all depends on your policy’s single item limit and valuables limit. 

If your engagement ring is worth more than your single item limit, you’ll need to list it separately on your policy. Similarly, if you already have a number of valuable items and adding an engagement ring to the list will go over your valuables limit, you’ll need to contact your insurer to look at extending your cover or insure your engagement ring separately. 

How to Find the Best Jewellery Insurance

There are many different insurance options available. If you aren’t able to add your jewellery as a listed item on your existing policy, or increase your level of cover, you may be able to purchase standalone jewellery insurance. This standalone policy doesn’t need to be with your existing insurer, though your insurer may be more likely to offer you a discount if you are already a customer. 

Compare policies to find out what options are out there, and what level of cover each insurer may be able to offer. If price is your primary concern, research how you might be able to bring your premium down without impacting the level of cover. For example, some insurers may reduce your premium if you have an alarm system or keep your valuables in a safe. 

Getting a Quote for Your Jewellery Insurance

You shouldn’t always go for the cheapest insurance option - the policy should thoroughly meet your own individual needs. However, you should shop around a little to make sure you’re getting the most suitable level of cover for the best price. 

Insurance companies will need to know details about you and your jewellery, including a description, its value and details of your purchase. You should then decide what level of cover you need, adjusting accordingly to meet your budget. For example, you could increase the voluntary excess, which may bring the price of insurance down, or you could remove certain levels of cover (such as accidental loss) to lower the premium. 

There may be a slight reduction in price if you pay as one annual sum instead of monthly instalments, but this will depend on the insurance company. 

Keeping Your Jewellery Safe

Claiming on your insurance should be considered a last resort. You should always prioritise keeping your jewellery safe to prevent accidental damage, theft or loss. 

Here are our top 10 tips for keeping your precious pieces of gold jewellery safe: 

1. Store your jewellery securely and safely, keeping your most precious pieces out of sight and out of reach. Installing a safe could be a good option if you have invested in really pricey pieces.
2. Look after your jewellery. Keep your gold clean and avoid undertaking tasks and activities that may cause harm to your jewellery. 
3. Regularly inspect your jewellery too. You’ll spot points of weakness or scratches much quicker, preventing damage from getting worse. 
4. Make sure your jewellery fits correctly. If you have a necklace with a dodgy clasp or a ring that feels too loose you’re significantly more likely to lose it. 
5. Take home security seriously. It may seem obvious to keep your doors and windows locked every time you go out, but you’d be surprised how many people ‘pop out’ and leave their property vulnerable.
6. Consider investing in an alarm system to deter thieves from targeting your property. 
7. If you’re taking your jewellery away from your home, keep your items safe by storing them in an inconspicuous, protective case to avoid damage or attracting attention. 
8. Keep comprehensive records of your jewellery. This includes keeping a receipt of purchase, photographs and up-to-date valuations. 
9. Take care on social media. We know it’s tempting to show off the latest addition to your jewellery collection, but try to avoid posting too many details about the value of your bling. 
10. Travel light. You don’t need to take your whole jewellery collection with you on holiday, which could significantly increase risk of theft, damage or loss. Instead, choose just one or two pieces you can mix and match throughout your trip. 

Some insurance policies may have specific security requirements, such as ensuring you keep certain valuables in a safe - failure to meet these requirements could invalidate your insurance cover. 

Making a Claim for Jewellery

If you do need to make a claim on your insurance it’s important you contact your insurer as soon as you can. Provide as much detail as possible, including sharing your valuation certificate, photographs and any receipts of purchase. 

How you receive your payment will depend on the individual insurer - some will offer a cash settlement once the claim has been verified. However, some insurers will provide a voucher to a certain jeweller or allow you to choose a replacement item or repair service from a jeweller of your choice, who will claim back the amount through your insurer. 

Here at Hatton Jewellers, we provide a free certificate of authenticity and insurance valuation. This proves your jewellery is the genuine article, detailing the retail value of the item. This makes it much easier to prove the worth of your jewellery if you do need to make a claim.

For more information about valuing your jewellery or looking after your gold, visit Hatton Jewellers’ blog or follow us on Facebook or Instagram.