Image Courtesy of Flickr_Ishan Manjrekar

Why is it so important to regularly obtain jewellery valuations for insurance purposes?

As we approach Christmas unfortunately burglaries increase, but people also buy special presents – sometimes forgetting to notify their insurance broker, which leads us on to obtaining up to date valuations for your jewellery collection. Owning luxury watches and jewellery is a matter of great pride for sure. Watches and jewellery are both highly collectable, take up little space and incur no Capital Gains Tax.

Cost of gold, precious stones and diamonds has increased by almost 15% over the past one year. There has even been a recent upsurge in the popularity of cufflinks! Expensive jewellery and engagements rings purchased provide great sentimental value but can also be extremely costly to replace. Being underinsured is a common problem for jewellery items that gain value over the years, or can be vulnerable to market fluctuations and changes in popularity from brands such as Rolex watches. To show the sort of increase in value, in 2000 a Rolex Cosmograph Daytona was worth £10,500 and is today valued at £27,650.

It is important to get right valuation so that in case of an unprecedented event of theft, loss or damage, right amount of compensation claim can be done. There are many factors which affect the valuation of jewellery such as market value.

Most insurance policies have a sum insured. If this is less than the total cost of your contents, including your valuables, then your cover may not be enough to fully replace your items should you need to claim.

Within your ‘contents sum insured’ there is a valuables limit which is the total amount payable for all your valuables (including jewellery). If this is not updated you could risk being underinsured. There is also a limit for ‘any one valuable item’. If you have a valuable item or a piece of jewellery that is worth more than this single item limit you’ll need to specify it on your policy to ensure it’s covered for the full amount.

Most insurance companies recommend jewellery is valued every three years as the price of jewellery and gold increases.

PK Partnership work with some of the UK’s leading specialist valuers. To arrange an up to date valuation report on your jewellery please contact Anjana Pankhania on 020 8681 4994 or


Tags: , , , , ,


Personal Finance Portal standard life