Getting the right jewellery cover

Jewellery is often purchased from shops and the value is therefore implicit from the start, but you may have family heirlooms and other items that are worth insuring too. Even if their sentimental value is irreplaceable, the money they are worth can be recouped.

Most home contents policies carry a maximum pay-out of £40,000, including all home contents including jewellery and watches, but there are limitations on single item claims.

What is a single item limit?

Most contents insurance policies include a clause that limits pay-out for a single item, usually around £1500 to £2500. If you have a single item of jewellery that is worth more than this, you may want to add a jewellery policy to your home insurance. Otherwise, even though content cover maximums may be £40,000, your £10,000 necklace would only be covered for £1500-£2500, depending on your policy.

Adding jewellery to home insurance

This is simple to do, but it is very important that you are clear about it up front. Mention it to your policy provider and make sure it is listed as an individually-covered item, and the value of it is included. It is important to get the valuation right, and make sure all of the details are listed on the policy. This will probably increase the cost of your policy, but the increase should be minimal, and it will ensure that you don’t get any unpleasant surprises if you try to claim for an expensive item later on, only to find you were robbed, and aren’t covered for more than the minimum.

Have your jewellery valued before insuring it

Anything can be valuated, watches, rings, necklaces, etc., but it is important to do so at a reputable dealer or shop that is used to doing valuations, and it is important that they provide a certificate of valuation for you.

Store the certificates of value in a separate place from the items themselves, so if your property burns down, for example, the valuations are not lost along with the items.

Jewellery collection specialist cover

Large collections of expensive jewellery – or single, very expensive items – should be covered separately. If you have a single item worth more than your contents policy minimum, or several items that exceed the maximum standard pay-out, then it is important to address these items separately, and make sure they are covered at the appropriate level.

Specialist insurers are available to cover items in this category and the same principles apply when it comes to shopping around for the best deals.

Watch insurance

Not only are watches prized items for thieves, they are also intricate little machines, and even repairs can be expensive. If you want to be protected against unexpected repair bills, consider insuring your expensive watch for repair as well as theft cover.

Personal Items insurance cover

This covers your personal items even when you are out of your home. If you travel around with expensive jewellery, watches, or gadgets, this is worth considering.