Contents Insurance May Need Reviewing As Jewellery Values Soar

Consumers may need to review their contents isurance policies as the value of their jewellery has risen with soaring gold and silver prices.

With gold and silver prices rising substantially in recent months, the value of jewellery items owned by consumers has also increased and may now exceed limits applied to existing contents insurance policies, warns NFU Mutual.

Many people may be surprised to know the average value of gold in homes across Britain is thought to be more than £1,100. This means many owners are likely to be underinsured and potentially unable to replace their most treasured possessions should they be misplaced or stolen.

With the rising precious metal prices, the true value of many heirlooms and engagement rings is unknown, says the insurance company.

Consumers owning valuable jewellery items and family heirlooms made from silver or gold are therefore advised to get them valued professionally and then check that their contents insurance offers the correct level of cover, particularly if they require high net worth insurance.

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, agrees:

“People who haven’t had their jewellery valued in the last five years need to seek advice from a registered valuer immediately. Gold prices have more than trebled since 2004 and the price of gemstones has also varied. Some people may be in for a shock, but better to be surprised by the true value now than be handed a bombshell when trying to replace lost or stolen valuables.”, he said.

To help consumers, NFU Mutual re-launched its interactive online contents calculator to help ensure homeowners don’t sell themselves short and that they get the right level of cover.