Advice for insuring your jewellery, watches and silverware

Whether by value or sentiment, protecting your prized possessions gives you peace of mind that if the worst was to ever happen, you're covered. In this guide we detail key questions and actions to take when insuring your jewellery, watch or silverware.  

Find our everything there is to know about jewellery insurance, including what's included in your jewellery insurance, what happens if you arent' covered and how to get your jewellery valued.

If you're in need of jewellery insurance, use this guide to make sure you're suitably covered. 

The best way to protect your jewellery in the event of loss or damage is to insure it - and this requires a valuation. To make sure you receive the correct sum in the event of a claim, you need a professional valuer to examine your jewellery and to produce a formal document giving a precise description of each piece and confirming how their value has been determined. It is essential that you discuss with your valuer how you would replace your items if they were to be lost as this is fundamental to the type of valuation produced.

In this guide:

1. Can I insure my jewellery and watches?
2. Why do my insurers need a jewellery valuation?
3. What’s included in jewellery insurance (what are the key areas of the policy)?
4. Why should I insure my jewellery/watches?
5. What happens if I don’t insure my jewellery or watches?
6. Isn’t my jewellery/watch covered under homeowners insurance?
7. How do I get my jewellery valued?
8. Where can I buy jewellery insurance?
9. How do I claim against my jewellery insurance?
10. Why is my insurer replacing my item rather than paying cash?
11. How can I ensure that a replacement item is a fair replacement for the original?
12. My insurer has agreed to pay cash rather than insist on a replacement but is
    offering less than the replacement value. Is that fair?
13. What can I do if I am not happy with my insurer’s offer of a replacement?
14. What should I look for in my jewellery insurance?

1. Can I insure my jewellery and watches?

Yes, and we’d very much recommend you do! You may already have some jewellery and watch cover on your home insurance policy. It is well worth checking your existing home insurance to see what limits apply to the amount of jewellery included and also what limits there might be on cover for individual items. Another item on your checklist should be to see how your item would be replaced in the event of a claim, for example would the insurer choose a supplier for your replacement or would you have a say in this?

Should you find your home insurance inadequate, it is a popular choice to insure jewellery and watches separately on a specialist policy. Equally, if you find that your home insurance policy is tricky to interpret then there are experts out there who specialise in specific areas of insurance, for example TH March have been insuring jewellery since 1887 and can help audit your cover (without charge).

Arranging a suitable insurance policy will mean you are then insured for loss, theft or damage to your jewellery and watches. An experienced insurance broker will help you if you need to arrange specific cover around your lifestyle and needs. For example, if you keep items in a safe or at a safe deposit facility, they should be able to arrange cover at a reduced cost for you.

2. Why do my insurers need a valuation?

In the event of loss, you must prove that you owned the items you are making a claim for. Valuations establish that you owned the pieces at the time of the valuation and their correct replacement value for insurance purposes. Many insurers do not ask for valuations below an agreed value but our advice is to obtain valuations for all significant items.

Smaller pieces can be grouped together and an overall value allocated. Without a valuation, insurers often use claims management specialists to try to find the value of jewellery after it has gone - an unsatisfactory process known as a post-loss valuation. Valuing something after you have lost it often results in an under-assessment of the lost item’s true value.

Find a jewellery valuer near me

3. What’s included in jewellery insurance (what are the key areas of the policy)?

There are a limited number of jewellery-specific insurers out there. A decent specialist jewellery insurance policy should offer cover for accidental damage, theft and accidentally losing an item, including loss of stones and also offer this cover while you’re away from home. General wear and tear is not usually covered.

You should also check the geographical limits of the policy, to ensure it also covers your valuables if you go abroad on holiday.

Check also how the insurer will repair or replace the jewellery. For example, will you only be offered vouchers from a list of specified suppliers or will you be able to return to your favoured jeweller and receive a like-for-like replacement of your precious item?

4. Why should I insure my jewellery/watches?

This is totally a personal choice. If you would like the peace of mind that your precious items can be repaired or replaced without the inconvenience of having to fund the repair or replacement yourself, then insurance is a suitable choice for you. Having a decent insurance policy for your jewellery and watches, such as that with TH March, means that if you were to lose your item today, in many cases you could be back at your jewellers within days collecting your repaired/new item.

Often our jewellery represents treasured memories. Although these can’t be replaced, at least the objects that evoke these memories can be. Even bespoke items and antiques can be insured for replacement.

We find that exchanging the relatively low cost of an insurance premium for the peace of mind obtained from the insurance is very much appreciated by the recipient of the new or repaired item at the end of the claims process.

5. What happens if I don’t insure my jewellery or watches?

If you lost your engagement ring, would you want to replace it? Say you damaged your favourite necklace, would you want to have it repaired? Your exclusive watch is stolen, what do you do?

Without insurance, you would have to pay for this unexpected cost at your own expense. Alternatively, you might never replace these items or the damaged items could stay sitting in a drawer somewhere.

Insurance gives you the peace of mind that your precious items can be repaired or replaced with ease. For a known set cost at the start of the insurance policy, you transfer the financial worry of loss or damage to your insurer.

6. Isn’t my jewellery/watch covered under homeowners insurance?

A standard home insurance policy usually has limits applying to the total amount of jewellery and watches included in the contents section and/or further limits on the amounts allowed for individual items.

Often, if an insurance policy does include cover for jewellery and watches, there is a restriction on how the items are replaced in the event of a claim. For example, it is common for insurers to provide vouchers from their specific list of jewellers. You also need to check to make sure your precious items are covered away from your home.

Our advice would be to check first (as you don’t want to pay twice!) and, if you need help, consult an expert insurance broker such as TH March. If you find that your current home insurance does not provide the right cover, it is well worth seeking a quotation or advice from a reputable specialist so you can make an informed decision.

TH March, specialist jeweller and watch insurance

7. How do I get my jewellery valued?

When insuring your jewellery, the valuation is vital in organising the replacement. The basis of an insurance policy is to put you back into the same position after the loss as you were immediately before it. That means replacing the lost item with a replacement item of the same type and quality.

When you speak to a professional jeweller/valuer, they will be able to discuss with you the basis on which you need your item replaced. For example, when reviewing a second-hand watch, it would usually be insured for its second hand replacement value rather than a new replacement value. A valuation should show your details as well as the valuer’s, describing the item, including such points as metal type, cut, weight, colour and clarity of stones; and make, models and serial numbers for watches. A photograph is often an essential. Having such a document in your possession at the start means you stand a better chance of being fully protected and armed to replace or repair your precious items with like for like.

It is straightforward to obtain a valuation for jewellery and watches, simply by approaching your local jewellers or valuers with your items. However for absolute piece of mind you can place your trust in an NAJ's Institute Registered Valuer (IRV). The IRV is the UK's leading body of jewellery valuers. Regulated by the National Association of Jewellers The IRV is a knowledgeable, reliable and trusted community of valuers that have been at the cutting edge of training, educating and raising the industry standard in the jewellery appraisal profession for more than three decades. They provide a high-standard professional service which is why a number of insurers specify jewellery valuations from a Member or Fellow of the Institute.

All IRVs abide by the NAJ's Principles of Best Practice for Valuers.

Find a Jewellery Valuer

8. Where can I buy jewellery insurance?

Some jewellers offer insurance at the point of sale when you are purchasing your item of jewellery, or can recommend a specialist insurance broker who can assist you.

You might also be able to add jewellery insurance on to your existing home insurance, however adequate insurance for jewellery is not always available under a standard home insurance policy, so it is well worth speaking to a specialist.

If you need help or a quotation, consult an expert insurance broker such as TH March who have been arranging insurance for jewellery for over 130 years. You can also check the approximate insurance premiums for jewellery using TH March's quick quote facility.

TH March Quick Quote 

9. How do I claim against my jewellery insurance?

When you choose insurance provider, it is worth checking how they will deal with your loss in the event you need to claim. With long established, specialist insurance brokers TH March, the process is made swift and easy by the fact that a valuation is requested at the start of the insurance policy, making it much easier to arrange for a replacement, as all the fine details and value of the jewellery are documented. Also, thanks to working so closely with the jewellery trade for over 130 years, the claims process is often incredibly speedy as jewellers trust TH March to settle the claims promptly and in turn will provide the replacements promptly.

When making a claim on your insurance, you will usually need to provide some details on the circumstances, often by filling out a form. A police report number is normally required if you lost the item somewhere or it was stolen. The benefit of using an expert insurance broker means that they can guide you and assist you throughout the process.

10. Why is my insurer replacing my item rather than paying cash?

Almost all home insurance policies reserve the right to replace items which are the subject of a claim, rather than pay cash. Many also arrange replacements through their own chosen supplier. Such a stance can be to the advantage of insurance customers: insurers can obtain a discount from suppliers, and it helps to reduce fraud (by the small minority who fake a loss as a means of creating cash), both of which help to minimise customers’ insurance premiums.

However, although that replacement process can be suitable for claimants who have lost an everyday item such as a television where insurers can easily seek an equivalent model, it works less well with jewellery where small differences in quality and style can greatly affect price and the claimant’s acceptance of the replacement.

This is where a specialist insurance policy, particularly for precious items such as jewellery, with a request for a valuation at the start, is most useful. A professional insurance broker would ensure cover is clear and claims process explained.

11. How can I ensure that a replacement item is a fair replacement for the original?

If the only description you have of your jewellery is that it was “a 3 stone diamond ring, purchase price £750”, you may not know whether the quality of the replacement ring offered by insurers is similar.

Having a professional valuation completed for your precious items will mean you have an accurate description of each item and a measure of the quality in terms of the type of precious metal, the size, colour and clarity of any diamonds, and a description of other stones, as well as an up-to-date replacement cost. Most valuations will also include a photograph. Such a valuation is a powerful protection against inadequate replacement.

The price of gold and stones can fluctuate, as can values of jewellery and watches for reasons other than this. It is sensible to speak to your jeweller/valuer about how often you should be revaluing your items so you are always informed of its value and can thus continue to protect it adequately. We recommend that your precious items are valued at least every 3 years.

12. My insurer has agreed to pay cash rather than insist on a replacement but is offering less than the replacement value. Is that fair?

Insurers normally avoid paying cash as part of jewellery claim settlements due to the ease and history of customer fraud related to this method. However, in some circumstances or on certain high value home insurance policies, cash settlements are made.

The Financial Ombudsman Service, set up to help sort out complaints between financial businesses and their customers, help to ensure customers are treated fairly. In respect of insurance claims, they take the view that it is acceptable for insurers to replace items, provided:

• it is fair to do so
• the insurer has taken reasonable steps to explain at the start and renewal of the insurance that claims would be handled in this way
• the replacement item is reasonably identical to the item it replaces.

A professional valuation helps ensure the replacement is reasonably identical. In the case where an insurer is agreeing to stray from the usual method of replacing the item and instead providing a cash settlement, provided they meet these Ombudsman rules, they have the right to pay out only what it would have cost them to replace. If the insurer has not met these rules, then they should pay the full replacement cost, or the sum insured on that item (value shown on the insurance document) if this is lower.

13. What can I do if I am not happy with my insurer’s offer of a replacement?

If normal negotiation is not working out for you, insurance policies should have a clear complaints procedure to which you can be directed.

Before going down the route of using the Financial Ombudsman Service (your final protection short of legal action if a complaint against an insurer fails), it is worth knowing that they take the view that it is perfectly in order for insurers to replace, and to use their chosen supplier, provided:

• it is fair to do so
• the insurer has taken reasonable steps to explain when you took out or renewed the insurance that they would handle claims in this manner. Given the length of most household insurance policies, the Ombudsman may expect the insurer’s right of replacement to be drawn to your attention in a policy summary, but that may not be necessary with a simple shorter wording
• the replacement item is reasonably identical to the item it replaces. A professional valuation helps ensure the replacement is reasonably identical.

If you use an insurance broker you have the added benefit of their support and expertise, and they can help negotiate with insurers on your behalf.

14. What should I look for in my insurance?

When considering insuring your precious items, such as jewellery, it pays to speak to an insurance broker. Better still, consult one who specialises in jewellery insurance.

You might find you have cover under your home insurance policy, and it is well worth checking there first.

Whether or not you have standalone insurance for jewellery or it forms part of your home insurance, many insurers do not ask for any form of valuation until it’s time to make a claim, even for quite high values. It is very easy to believe that this means less hassle for you at the start. However, insurers are entitled to ask for evidence of value when there is a claim, unless they have already “admitted values” – where the insurer agrees before a claim to accept a valuation as evidence of the value except where fraud is involved. We also recommend your precious items are regularly revalued – at least every 3 years.

When you choose insurance provider, it is worth checking how they will deal with your loss in the event you need to claim. For example, specialist jewellery insurance brokers TH March, try and make the claims process smoother for the customer by requesting a valuation at the start of the insurance policy, making it much easier to arrange for a replacement as all the fine details and value of the jewellery are documented.

Another point to look for is how the insurer will repair or replace the jewellery. For example, will you only be offered vouchers from a list of specified suppliers or will you be able to return to your favoured jeweller and receive a like-for-like replacement of your precious item?

The cover itself should be examined, so for example does the policy cover theft, accidental damage and accidentally losing the item? Is there cover for taking the items away from the home and are there any restrictions on wearing or storing the item?

A specialist jewellery insurance broker such as TH March will be able to assist in these areas. 

Find a Valuer near you

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