35 to 40% of jewellery claims not paid out in full

If you were one of the lucky ones on Valentine’s Day and received an expensive gift of jewellery, you will hopefully have insured it by now. It is not, however, enough simply to add it to your home contents insurance and forget about it.

With the rising value of gold and diamonds, a staggering 35 to 40% of jewellery claimants are finding they are underinsured, resulting in a large gap between the value of the item lost and the amount paid out by the insurance company.

The number of claims has dropped recently but the value of an average claim has risen to a two-year high of between £9,000 and £10,000 according to Halifax Home Insurance.

So what should you do to safeguard that precious piece of jewellery?

  • First of all, do not assume that it will be automatically covered by your contents policy. Check your insurance documents and see whether your insurance company requires you to specify high-value items individually.
  • Secondly, keep receipts and valuation certificates in a safe place as they will be needed by your insurers should you need to make a claim. Regular valuations are recommended to keep pace with the rising value of gold and diamonds. Whilst the recommendation used to be to have valuations carried out every couple of years, annual valuations are now advised. Photos of each piece of jewellery can help with your claim.
  • Thirdly, prevention is better than cure so make sure your jewellery is unlikely to fall into the wrong hands: keep it in a home safe or lockable cupboard and if you have a really expensive family heirloom consider keeping it in the bank when it is not being worn.
  • On a more general note, consider installing a burglar alarm and security lighting to make your home a less attractive prospect for the opportunistic thief.

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