Bill's Business Blog

Do You Need Your Jewellery Insurance Valued?

If you own a lot of jewellery, then you want it covered by your home insurance. Does this happen automatically for all your jewellery? If you have valuable pieces, should you have them valued to prove how much they're worth if you ever have to make a claim?

General Jewellery Coverage 

Most home insurance policies cover jewellery as part of their general coverage. However, your insurance company may put a total maximum value on the amount you can claim for these items. It may also set limits for how much you can claim for an individual piece of jewellery.

For example, your policy may allow you $2,000 for claims against jewellery, generally with an individual limit amount of $500. Amounts vary depending on your insurance company. You may be able to negotiate higher limits; however, this may increase the costs of your premiums.

High Worth Jewellery Coverage

Insurance companies may also set limits on the value of jewellery that can come under general coverage. If you have some pieces that are worth more than this amount, then they may need to be listed separately. You may also need to plan ahead. If you ever do make a claim, then your insurer may ask for proof of the jewellery's value before they pay out.

Sometimes, you can do this by providing a receipt showing the purchase price. If you don't have a receipt because you didn't keep it or lost it or because the jewellery was inherited or was a gift, then your insurance company may accept a valuation of the piece. You can't do this; you'll need to have the jewellery professionally valued.

Keep in mind that you need to have jewellery valued when you take out the policy, so you have the valuation in hand if you ever need to use it. Obviously, this isn't something you can do if you lose the jewellery or it is stolen. If you can't prove how much your high-value jewellery is worth at this stage, then your insurance company may refuse to pay.

Check your home insurance policy for its terms on jewellery before you decide if you need to have your pieces valued. If you would need a formal certificate of valuation in the event of a claim, then talk to local jewellers. They can appraise your jewellery for you and give you a certificate that confirms how much it is worth.