HOUSEHOLDS with gold jewellery in their homes have been warned about an easy mistake which could cost them thousands of pounds.
The price of gold has increased by a whopping 112% in the last decade, according to Admiral Insurance.
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Meanwhile, the average value of gold jewellery rose from £1,826 in 2022 to £2,401 in 2023 – a £575 leap.
But if the value of your gold jewellery has risen and you’ve not told your insurer about it, it could mean you’re not fully covered.
Ahead of Valentine’s Day, Admiral is urging households to check their cover for gold jewellery, watches and rings and avoid a bill worth potentially thousands of pounds.
Noel Summerfield, head of household at Admiral, said: “Watches and jewellery are often valuable, both financially and sentimentally, so it’s really important that people make sure they are properly covered should the worst happen, and they need to make a claim.
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“The price of gold has been on an upward trajectory for the last ten years, so if your jewellery and watches have been insured for a long time and you’ve never thought to check if the value has gone up, now is the time to make sure you’ve got the level of cover that you need.”
Analysis from Admiral found the price of gold per ounce in December 2013 was £770, compared to £1,632 in December 2023 – a £862 difference.
Meanwhile, the insurer found the average value of gold jewellery per ounce was £1,826 in 2022 compared to £2,401 in 2023 – a £575 jump in just 12 months.
Plus, it said the average value of gold chains per ounce was £2,146 in 2018, rising to £2,631 in 2023 – a £485 jump.
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Noel said Admiral had seen claims from customers who hadn’t updated the value of their items in four decades, with some increasing in value by over 700%.
He added: “Providing up-to-date item values to your insurer is vital for making sure that if you do have to make a claim, you will be covered for the full value of your items.”
How to get make sure your jewellery is covered
Make sure your jewellery’s value is up to date by getting a valuation done.
Valuation services are offered by most high-street jewellers and specialist providers such as The Guild of Valuers and Jewellers.
You can also check out the National Association of Jewellers website for a list of approved jewellery, watch and silverware appraisers.
You type in your postcode and it brings up the closest appraiser to you.
You may be asked to book an appointment to get a jewellery valuation done, or it may be sent away to be looked at.
In the second scenario, you may have to wait around two to three weeks to get the valuation back.
A gold valuation should include a photograph, two copies of a valuation certificate and a detailed description of the piece.
You can take this to your insurer at any stage to make sure your policy is up to date and you are covered.
How you pay for a valuation depends on who you do it with.
Some charge a percentage of the value of the piece while others charge a fixed fee.
You can also work out the value of your gold by weighing it yourself which could save you money, but bear in mind insurers may want extra, more detailed information on top.
For example, they may also factor in an item’s historic value, whether it’s a certain brand, condition and any added gems.
Some insurers will also only accept valuations from professionals accredited by industry bodies such as The National Association of Goldsmiths (NAG) or the Institute of Registered Valuers (IRV).
How to insure jewellery
Most home insurance policies cover the loss, theft or damage of jewellery up to the value of £1,000.
Anything over this and it might be worth taking out jewellery and valuables insurance.
According to comparison site GoCompare, a standard jewellery and valuables insurance policy will likely cover you for:
- accidental loss
- theft
- accidental damage
- loss of diamonds or stones
- away from home cover, including overseas
In most cases, you won’t be covered under a jewellery and valuables insurance policy if there’s scratches and dents or general wear and tear to an item.
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Again, you’ll want to get your jewellery valued before calling an insurer about cover, so everything is up to date.
You can use comparison websites like GoCompare and Compare The Market to find the best deal for you.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
