After the indulgences of Christmas and faced with the comparative sobriety of January, popular new year’s resolutions are often either to narrow the waistline or save a bit of money. Now, we all know that a new year’s resolution is much easier made than kept, and we can’t offer much help with the first (gym-membership?) … but the good news is that keeping the second may be simpler than you thought.
If you own items of high value jewellery, such as an engagement ring or a Rolex, for example, it is worth considering insuring these on a separate policy as this may enable you to obtain a lower premium on your home insurance, as well as helping to protect your no claims bonus.
The reason behind this is to do with the wording of most standard home insurance policies, which traditionally fall into two sections: ‘general’ and ‘all risk’. The ‘all risk’ section is reserved for items that are particularly valuable or used away from home – such as watches and jewellery. The additional protection that this requires is reflected in the cost to insure, and can push the overall premium of your home insurance up greatly.
Further to this, most standard ‘all-inclusive’ policies impose a limit on the maximum cover provided in the event of loss or damage, which can sometimes be as low as £5,000. As the price of precious stones and metals has soared in recent years, even jewellery that once fell within this boundary may in fact no longer do so. (We recommend regular jewellery valuations. Try contacting the National Institute of Goldsmiths for a list of registered valuers.)
By moving more valuable items to a separate, specialist policy, you may be able to take advantage of home contents insurers that offer excellent rates for ‘general’ insurance, but poor rates for ‘all risk’ cover, and thereby dramatically lower your premium.
You might find specialist insurance offers other benefits, such as cover for longer trips and fewer restrictions on wearing your jewellery at all times.
In other words, it’s a move that not only will help you keep the new year’s resolution, but will also give you the assurance that the items you treasure most are adequately covered.