Whether it’s a diamond engagement ring, a bespoke gold bracelet, or a treasured family heirloom, ensuring you’ve got the most appropriate insurance protection for your jewellery is important.
In this article, we’ll discuss some of the most common jewellery insurance myths and misconceptions, as well as answering probably one of the biggest questions of all: does home insurance cover my jewellery?
Myth 1: My home insurance will cover all of my jewellery
While home insurance may provide some protection for your jewellery, it is unlikely it will cover everything. This is because many home contents insurance policies typically include a single item limit this is the maximum amount you can claim for any one piece. This limit is defined under your home insurance policy wording.
This means that if your engagement ring, luxury watch or other piece of jewellery is worth considerably more, or it’s a bespoke or vintage piece, your insurer may only pay up to the specified limit unless the item is listed separately under your home contents insurance policy.
The majority of policies will also only cover items away from your home, if you have enacted the separate “All Risks” Insurance section. Some mid to high-net-worth home insurance policies, will automatically cover items away from the home.
Another important point to consider is the excess amount. If you make a claim under your home insurance, you’ll may need to pay a policy excess this is the first part of any successful claim you’re financially responsible for.
In contrast, standalone jewellery insurance policies often have no excess at all. At Assetsure, for example, if you make a successful claim under your jewellery insurance policy, there will be no excess to pay.
Assetsure will allow you to accept an excess if you wish to lower your premium.
It’s also worth remembering that a home insurance claim may affect your no-claims bonus, potentially increasing your premiums at renewal.
Choosing dedicated jewellery insurance can help you avoid this, keeping your home insurance policy unaffected while ensuring your jewellery is properly protected.
Myth 2: Jewellery insurance is expensive
Some people may think that specialist jewellery insurance is cost prohibitive. However, the cost may typically only represent a small percentage of the item’s value each year so you may consider it worthwhile for the peace of mind that your precious item or items are protected against unexpected events.
If you’re wondering “how much does jewellery insurance cost?”, it may be useful to know that premiums typically depend on several factors. This may include, but is not limited to:
- The policy type and insurance provider
- The item’s value
- Where the jewellery is kept, and
- Whether worldwide cover or accidental loss protection is included.
Choosing a specialist provider of jewellery insurance means your policy can be tailored to reflect your lifestyle and how often you wear or travel with your pieces.
You can get a no-obligation jewellery insurance quote here to see how much jewellery insurance costs.
Myth 3: I will never lose a piece of jewellery
No matter how careful you are, and how cherished a piece is, accidental loss really can happen to anyone. Rings can slip off unnoticed, earrings can come loose while changing clothes, and bracelets and necklaces often unclasp without warning.
Sadly, jewellery can be lost easily, so missing out on this level of protection may be a mistake.
Myth 4: I don’t need a separate jewellery insurance policy
While not everyone may need a separate jewellery insurance policy for their valuables, for many owners, it makes sense. A dedicated policy is designed to offer tailored protection often beyond the standard limits of home contents insurance.
A standalone jewellery insurance policy may be worth considering if you own high-value items that exceed your home insurance limits; you have a bespoke or heritage piece; you own a jewellery collection; and/or you need worldwide cover and accidental loss protection.
Myth 5: My item will be replaced with the exact same piece
Although some jewellery insurance providers will try to source an identical replacement, some policies will replace the item with one of a similar kind and quality or offer a cash settlement based on its valuation. Like for like replacements for heritage jewellery pieces, for example, or bespoke designs, may be impossible to find, so do bear this in mind.
If your jewellery has unique features or sentimental significance, talk to your insurer.
Myth 6: It’s too hard trying to get my jewellery valued
Finding the right professional to value your jewellery can be challenging you’ll need a qualified jeweller or registered valuer who can issue a valuation certificate that meets the insurance provider’s requirements.
For high-value or bespoke pieces in particular, jewellery valuations should be carried out by a professional someone who is experienced in assessing materials, gemstones, and craftsmanship. You may need to contact a few jewellers to find one who provides formal valuation certificates suitable for insurance purposes. When requesting a valuation, it’s good idea to establish the cost beforehand, some charges are based on the valuations provided.
However, the process doesn’t need to be stressful. At Assetsure we can help you access a trusted jewellery valuation service, saving you the time and effort of sourcing one yourself.
Having accurate valuations in place supports your insurance cover. You can learn more about valuations and cover options by reading our blog: Getting a jewellery valuation.
Myth 7: Jewellery insurance covers everything without exception
Even the most comprehensive insurance policies have limits, and jewellery insurance is no exception. No insurer can cover every possible eventuality, which is why it’s important to read your policy carefully and understand what your cover entails.
Some of the usual exclusions typically may include:
- Gradual wear and tear, scratches, or dulling of stones over time
- Damage caused by unapproved repairs or alterations
- Losses occurring in countries or regions excluded from your policy
- Loss or damage caused by not complying with the policy terms and conditions (e.g., not leaving unworn valuables in a safe while on holiday; leaving jewellery unattended in a car).
By understanding what the policy exclusions are or asking your jewellery insurance provider for clarification you can ensure that you comply with any policy terms and conditions, potentially avoiding unpleasant surprises when making a claim.
Myth 8: My jewellery’s insured for its full value because I declared what I paid for it
Many people believe that once they tell their insurer how much their jewellery cost, it’s automatically insured for that amount and then just leave the cover to renew at the same sum insured every year.
In some cases, this can lead to underinsurance. This is because jewellery values often change over time due to fluctuations in metal, gemstone, and craftsmanship costs.
In essence, if your policy isn’t regularly updated with a current valuation, in the event of a successful claim, you may receive less than the replacement cost after a loss or theft.
To avoid this, it’s important to have your pieces professionally revalued every few years and update your insurance provider accordingly. That way you can feel your jewellery remains fully protected at today’s true value.
Myth 9: All jewellery insurance covers travel abroad
Only policies that include worldwide jewellery cover will protect you when travelling abroad. Many standard home contents policies, for example, may restrict cover to the UK only or limit the number of days you can be aboard or have a restriction on the locations you can travel to.
With worldwide cover, your jewellery remains protected wherever you go, whether that is a destination wedding, a cruise, or a city break.
And on the subject of travel, before you go, always check your policy wording. Some insurers exclude specific regions, and you may need to take additional security precautions such as using hotel safes.
To find out more, please read: Travel guide for taking your jewellery abroad
Myth 10: I must buy my home insurance from my jewellery insurance provider
Typically, your jewellery does not have to be insured through the same company that covers your home. You’re completely free to choose a different insurance provider and buy standalone cover for your items.
This means you can cherry pick the jewellery insurance cover that most suits your needs, and your budget.
Do you need further advice or help?
At Assetsure, our policies are built to cover a wide variety of treasured items, protecting them against a wide range of risks, wherever life takes you. Cover includes:
- Worldwide protection, so you’re insured both at home and abroad
- Unlimited trips overseas, for up to 60 days per journey
- Cover for accidental damage, theft, and loss (Loss may be excluded under some policies)
- No excess to pay.
Our goal is simple to give you complete confidence that your jewellery is properly protected, whether you’re travelling, celebrating, or simply wearing it day to day.
Jewellery is both financially valuable and deeply personal, which is why insuring it may matter to you. You can get a jewellery insurance quote here or contact our team on 0208 0033 190 for more information and help.
Further reading: Mistakes people make with their jewellery insurance and Guide to jewellery insurance for bespoke, high-value, and heirloom pieces
