UPDATE: |Households urged to check jewellery insurance cover after gold prices surge News

If your valuables haven’t been revalued in years, now’s the time

Households across the UK are being urged to check their jewellery insurance cover as they might be leaving their valuable bling under-insured.

The warning comes off the back of jumps in the price of gold to record levels, as investors turn their attention to “safe haven” assets amid global market turmoil following US President Donald Trump’s recent tariff spree.

Since the beginning of 2024, the price of the precious metal has risen by more than 40% and is set to increase by another 8% this year, according to Goldman Sachs.

A new press release issued by Admiral Home Insurance is urging households to take the time to review their cover for gold jewellery and luxury watches.

The value of a 3ct diamond ring could be worth £7,300 more in just one year, while even the lowest-priced Rolex watch is worth £1,400 more than 10 years ago.

Insurers tend to have limits on cover for valuables and some may need specific cover.

Admiral say items worth more than £2,000 must be individually listed on its home insurance policies.

The company said it dealt with more than 300 claims for watches stolen outside the home in 2023 and 2024.

Of these, two-thirds were valued at more than £2,000 and specifically listed on policies, underscoring the need to regularly check valuations.

The insurer have outlined five tips to ensure gold items and luxury watches are fully covered:

1. Keep receipts – Having proof of the amount paid and the date can also help with tracking changes in an item’s value over time.
2. Create an inventory – Keep a secure, up-to-date record, including high-quality photos stored safely, such as in the Cloud.
3. Check the policy small print – You may need to list items separately and make sure they have appropriate cover if they are taken out of the home. Individual insurers have their own thresholds and requirements.
4. Store valuables securely – Some people may want to consider storing items locked away. Some insurers require items over a certain value to be stored in a safe. Admiral, for example, requires jewellery, items containing gold, and watches worth more than £10,000 to be stored in a safe.
5. Keep valuations up to date – Many high street jewellers and specialist organisations offer valuation services. If an item’s value changes, submit an updated document to your insurer.

Noel Summerfield, household director at Admiral Insurance, said: “Providing up-to-date valuations to your insurer is essential so if you do have to make a claim for theft, damage or loss you will be covered for the full value of your items.

“If something is undervalued, insurers might not pay out its full worth,” he added.

“Gold prices have tripled in a decade – if your valuables haven’t been revalued in years, now’s the time. Depending on the value of your item, your insurer may need you to provide proof of how much it’s worth when you add it to your policy.

“However, it’s also important to make sure you check the value of your item regularly and, if it changes, you should update your policy to make sure you’re fully covered.”