Households might need to review the cover included in their home insurance policy, as the rising value of jewellery could mean that they are underinsured.
 
According to research by NFU Mutual, owners of gold jewellery are at a particularly high risk, as the value of gold has more than trebled since 2004, so those who have not had their gold jewellery valued recently might find their home insurance will not cover the full value if it is lost or stolen.
 
Households with family heirlooms and even every-day items like engagement rings, are often unaware of the true value of their valuable possessions, says NFU Mutual, because the increase in gold value has more than doubled the street value of some family valuables, bringing the average value of gold items to £1,100 per household.
 
Commenting, Paul Richardson, home insurance specialist at NFU Mutual, said: “If the contents of some jewellery boxes needed to be replaced, some owners may be devastated to find their current insurance policy would only pay out a fraction of the cost of replacements. Sentimental items such as engagement rings and heirlooms passed down through the family are typically underinsured as many current owners have never had them valued.”
 
Nicholas Major, chairman of the National Association of Goldsmiths, urges people to get their jewellery valued to avoid being unable to replace their valuable items.
 
Mike Powell, insight analyst for general insurance at independent financial research company Defaqto, stresses the effect that a variation in value can have, and the importance of including jewellery when calculating the value of personal possessions.

“Valuables such as jewellery are important to remember when calculating home contents as they could make up a large chunk of any claim. An accurate record of jewellery can be invaluable should you need to make a claim and it’s very useful to have photographs of any valuables in case they are lost or stolen.”

© Fair Investment Company Ltd