An urgent warning to anyone with gold jewelery as a crucial mistake could cost you £1,000
HOUSEHOLDS with gold jewelery at home have been warned about an easy mistake that could cost them thousands of pounds.
According to Admiral Insurance, the price of gold has risen by a whopping 112% in the past ten years.
Meanwhile, the average value of gold jewelery rose from £1,826 in 2022 to £2,401 in 2023 – a jump of £575.
But if the value of your gold jewelry has increased and you haven't told your insurer, you may not be 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 potentially worth thousands of pounds.
Noel Summerfield, head of household at Admiral, said: 'Watches and jewelery are often valuable, both financially and sentimentally, so it is very important that people make sure they are properly covered if the worst happens and they need to make a claim.
“The price of gold has been on the rise over the past decade, so if your jewelry and watches have been insured for a long time and you've never thought to check whether the value has increased, now is the time to make sure you have the level of cover you need.”
Admiral analysis found that the price of gold per ounce was £770 in December 2013, compared to £1,632 in December 2023 – a difference of £862.
Meanwhile, the insurer found that the average value of gold jewelery per ounce was £1,826 in 2022, compared to £2,401 in 2023 – an increase of £575 in just twelve months.
In addition, it said the average value of gold chains per ounce in 2018 was £2,146, rising to £2,631 in 2023 – a jump of £485.
Noel said Admiral had seen claims from customers who had not updated the value of their items in four decades, with some increasing in value by more than 700%.
He added: “Providing up-to-date item values to your insurer is vital to ensure that if you do need to make a claim, you are covered for the full value of your items.”
This way you ensure that your jewelry is covered
Make sure that the value of your jewelry is up to date by having an appraisal carried out.
Valuation services are offered by most well-known jewelers and specialist providers such as The Guild of Valuers and Jewelers.
You can also check the National Association of Jewelers website for a list of approved appraisers of jewelry, watches and silverware.
You enter your zip code and the nearest appraiser will be displayed.
You may be asked to make an appointment for an appraisal of the jewelry, or the jewelry may be sent to be viewed.
In the second scenario, you may have to wait about two to three weeks before you get the appraisal back.
A gold appraisal must include a photo, two copies of an appraisal certificate, and a detailed description of the piece.
You can submit this to your insurer at any time to ensure your policy is up to date and that you are covered.
How you pay for an appraisal depends on who you do it with.
Some charge a percentage of the value of the piece, while others charge a flat fee.
You can also determine the value of your gold by weighing it yourself, which can save you money, but keep in mind that insurers may want additional, more detailed information.
For example, they may also take into account the historical value of an item, whether it is a particular brand, condition and any added gemstones.
Some insurers 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 jewelry?
Most home insurance policies cover the loss, theft or damage of jewelry up to a value of € 1,000.
If you go further with this, it may be worth taking out jewelry and valuables insurance.
According to comparison site GoCompare, a standard jewelry and valuables insurance policy will likely cover you for:
- accidental loss
- theft
- accidental damage
- loss of diamonds or stones
- outdoor coverage, including abroad
In most cases, you will not be covered by jewelry and valuables insurance if there are scratches, dents or general wear and tear on an item.
Again, you'll want to have your jewelry appraised before calling an insurer about coverage so everything is up to date.
You can use comparison websites such as GoCompare and Compare The Market to find the best deal for you.
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