When asking yourself whether any kind of insurance is worth the cost of the premiums, the important points to consider are:
- the risks of the insured items being stolen, lost or damaged;
- the cost of repairing or replacing them if loss or damage occurs; and
- whether you are prepared, or able, to foot the cost of repair or replacement yourself or value the indemnity provided by insurance.
If you are talking specifically about jewellery, the answers to these three questions are likely to be especially illuminating. Jewellery is easily portable and often valuable – ideal targets as far as thieves are concerned, small enough to be lost and intricate enough to be easily damaged. The cost of repair or replacement of such valuable items is therefore high, and may well be beyond your financial means to meet.
For these reasons, you might consider the relatively small cost of insurance premiums to outweigh the potential financial losses if your jewellery is stolen, lost or damaged.
If you have home contents insurance, you are likely to find that personal possessions such as jewellery, antiques and family heirlooms are covered under that policy and even provide a degree of protection when you are travelling away from home and have those items with you – as we point out in our series of FAQs on home contents insurance here at UKinsuranceNET.
The total sum insured under your homes contents policy is the maximum amount any insurer is required to pay out in the event of loss or damage to any of your possessions. But, as the Association of British Insurers (ABI) also warns, there may be limits on the total amount it is possible to claim for any one item.
Since that limit might be within a typically range of just £1,000 to £2,000 this might not provide sufficient cover for your more expensive pieces of jewellery – diamond encrusted engagement rings, for instance, or antique items of jewellery passed down through the generations.
Whether or not you have home contents insurance, that is the reason why separate standalone jewellery insurance may be worth your while.
In this way, you are able to value each item of precious jewellery and make certain that it is insured accordingly – to its full insurance valuation.
If you choose a specialist provider of jewellery insurance, you may have the option of insuring single items or the entire contents of your jewellery box or collection. If you frequently travel with your favourite pieces of jewellery with you, you might also want to ensure that the cover you buy provides international cover against theft, loss or damage.
Bespoke jewellery insurance may be tailored to cover specific items in your collection, such as gold, ring insurance, engagement ring insurance, watch insurance or a host of other precious pieces.
With a specialist provider of jewellery and watch insurance such as ourselves, you are unlikely to run the gamut of any call centre exchange, but be able to speak directly to a qualified expert to discuss your individual needs and requirements in detail.
In the event of your having to make a claim sometime in the future, the same specialist broker is typically available to help you negotiate that process too.