Jewellery insurance – a guide to getting the right cover at the right price

If you own valuable items of jewellery such as expensive rings and watches, then you may need specialist jewellery insurance to make sure they are fully covered.

Jewellery box full of jewellery items

As most home contents insurance policies have payout limits for single items, you could find yourself unable to replace expensive items of jewellery if they are not covered separately. 

Jewellery insurance is designed to provide cover for your jewellery items in the event they are lost, stolen or damaged. It is commonly used to protect valuable items you have inherited as well as expensive one-off items such as engagement rings and gifts.

You typically have two options when arranging cover for jewellery. You can add the items to your existing home contents insurance policy – for an extra cost – or you can take out a specialist jewellery insurance policy.

When you might need jewellery insurance

If your collection of jewellery is worth less than around £1,500 then it should be covered as standard by your current home insurance policy (although it’s definitely worth checking out your policy terms to make sure).

Many standard contents insurance policies will offer cover for your belongings up to a limit specified by you e.g. £50,000. In this case, if your belongings are stolen or destroyed in a fire you can claim a maximum of £50,000. However, this will cover all of your home contents – computers, TVs, electrical items, furniture etc. as well as your jewellery.

Also, many home contents policies have a limit on how much they will pay out for a single item such as a watch or ring.

So if your policy has a single item limit of £2,000, you could make a total claim of up to £50,000 but the most you could claim for one item would be only £2,000. If you have items of jewellery that are worth more than £2,000 then you will need to inform your home insurer and list them separately on the policy, which will increase your monthly premium.

If you have some particularly expensive items of jewellery then you may find that specialist jewellery insurance offers better value for money than topping up your contents insurance.

Specialist jewellery insurance offers more peace of mind as you have a wider range of cover options to choose from to suit your lifestyle and a much simpler valuation and claims process. You can also find policies to cover an entire jewellery collection, which much higher limits than you will find on standard home insurance policies.

What jewellery items should be covered?

Ashes ring

Classic ashes ring by Together Always

Diamond engagement and wedding rings tend to be the most expensive items of jewellery many of us own, so it’s no surprise that these are typically the most expensive items listed on home insurance policies.

These are followed by watches (particularly luxury brands such as Rolex), diamond earrings, bracelets and necklaces.

As these items are likely to exceed the single item limit on home insurance policies, they require their own form of cover to make sure they are protected.

There are also many jewellery items that have a sentimental value, such as ashes rings and family heirlooms, which may also require their own insurance to make sure they are protected.

How to get the right level of cover for your jewellery

Including watches, jewellery is the most expensive item added to home insurance policies. The top five is as follows:

  • Watches – average value: £3,500
  • Jewellery – average value: £2,750
  • Computers – average value: £1,500
  • Laptops and tablets – average value: £850
  • Bicycles – average value: £750

In order to get the right level of cover, you need to know exactly how much your jewellery is worth – which means getting a valuation.

You need to get an accurate valuation so that you know your jewellery is completely covered and that you are not overpaying for your insurance.

As a lot of jewellery items can increase in value, it’s worth getting an up to date valuation before adding them to a policy. Precious metals such as gold and gems and diamonds can all increase in price over time, so your diamond ring may well be more valuable now than it was when you first got it.

Where to get a jewellery valuation

It’s important to make sure you use an approved jewellery valuer, as most insurance companies insist on valuations from those registered and approved by the National Association of Jewellers.

Visit their site to find a registered valuer from the Institute of Registered Valuers (IRV): https://www.naj.co.uk/find-an-irv

This is the safest way to make sure your insurer will accept and honour your valuation – just make sure you keep your valuation certificate safe and keep a digital copy as well.

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