The COMPLETE guide to specialist jewellery insurance
If you’re fortunate enough to own a cherished piece of beautiful jewellery, you should be able to wear it with pride.
But unless you have specialist jewellery insurance, it’s not always possible to do that without being exposed to potential risks.
Unfortunately, this often means family heirlooms, irreplaceable pieces or unique items of jewellery are left hidden away.
Whilst no amount of money can replace the sentimental value if an item is lost, stolen or accidentally damaged; a tailored insurance solution can ensure you’re financially compensated should the worst happen.
If you want to choose the jewellery insurance that’s right for you, this in-depth guide will explain:
- What jewellery insurance is and items it covers
- The 3 main risk factors which influence cost
- Steps you can take to safeguard against losses
- Things you should look for from an insurer
- The claims process – and how to deal with it
- Do you ACTUALLY need jewellery insurance?
What is jewellery insurance?
Jewellery insurance is designed to cover the cost of replacing your valuable pieces should they become lost, damaged or stolen.
Why was it first created?
In the early part of the 19th century, the jewellery trade was largely uninsured or underinsured. This meant people and traders would often end up financially out of pocket if their items suffered any damaged, were stolen or became misplaced.
Today, many of the UK’s leading jewellery manufacturers and trade organisations could not operate without insurance – including:
- Company of Master Jewellers
- National Association of Jewellers
- National Pawnbrokers Association
- Giftware Association
Specialist jewellery insurance has also become an everyday essential for mid and high net worth individuals.
What pieces can be covered?
Most specialist jewellery insurers can protect a wide range of items – including:
- Wedding rings
- Engagement rings
- Diamond rings
- Diamond necklaces
- Diamond earrings
- Lost stones
Can I cover a jewellery collection or set?
Ring and jewellery collections are usually one of the most expensive items insured by wealthy individuals.
In our experience, the most cost-effective way to adequately cover a treasured set or collection is to adopt a portfolio approach – where several items are included as part of one specially-tailored policy.
What risk factors influence the cost of cover?
There are a countless number of circumstances which are considered before setting your jewellery insurance premium.
In our experience, the main 3 factors are…
1. Security: Features like certified locks on doors and windows, shutters and any other security additions such as alarms, CCTV or guards.
2. Storage: Keeping valuables securely locked in a safe means theft is less likely.
3. Risks: Some insurers use software or databases to determine risk, others carry out manual assessments – taking into account wearing habits and lifestyle choices.
Why do the majority of losses occur?
Unfortunately, it can become easy for expensive jewellery owners to become a bit complacent – and this is usually why most losses occur.
Either they don’t place enough emphasis on having the right security – or they have the right security in place, but fail to use it properly.
Could I make changes to reduce the premium I pay?
Trying to prevent loss, which can cause a lot of upset, is often much easier than dealing with the aftermath.
Having looked after the interests of mid and high net worth individuals since 1958, we are very experienced at understanding people’s needs and the worries which keep them awake at night.
By working in partnership with you and understanding your needs – no matter how unique they are – we can devise a specialist jewellery insurance policy which offers the right protection at a price you can afford, without restricting your activities.
When a jewellery policy is taken out, we will:
- Professionally assess and value your high-value pieces
- Meet our Private Clients to review security and procedures
- Issue safety advice – improvements to locks, home security etc
- Ensure you understand how to use any alarms or safes
- Ensure there are no insurance gaps or risks – items, habits, risks etc
Unfortunately, there will always be criminals who operate – no matter what steps are put in place to deter them.
Should a crisis occur, we are immediately on hand to resolve any issues and our professionalism and dedication sets us apart.
If necessary, we’ll help to guide you safely through what can sometimes prove a difficult or distressing experience.
Will my specialist jewellery insurance have any exclusions?
It definitely pays to be fully aware about what’s included in your policy in case any exclusions apply.
Unfortunately, the policies issued by many standard market insurers and comparison websites probably won’t allow you to claim for:
- Misplacement – accidentally losing an item at home
- Unforced theft – if there was no sign of forced entry
- Cosmetic damage – certain dents or scratches
- Wear and tear – losing a gemstone
What can be done to safeguard against losses?
At Nowell and Richards, our policies are NOT laden with clause or warranties – so you can be confident you’re properly protected in the event of a claim.
When buying a specialist jewellery insurance policy, we can make sure your valuable items are FULLY protected for:
- Theft – Peace of mind should the worst happen and items get stolen
- Accidental Damage – Get a repair or replacement if accidents happen
- Accidental Loss – For misplaced jewellery or unintentional losses
- Loss of stone – Precious stones need replacing if they are lost
Whilst all of the above are provided as standard, we can also offer:
- Worldwide ‘all-risks’ protection for travelling or holidays
- No excess to pay in event of a loss
- Cover in and away from your home
- No extra security requirements needed
- Robbery and physical loss
Will I be covered if I take jewellery abroad?
Although Nowell & Richards offer full protection when you take jewellery abroad, not all insurance companies do.
Some only offer cover if you’re travelling to a certain country or are only going away for a limited length of time. Others will refuse overseas claims outright.
If you intend to wear expensive items when travelling away, always check what level of cover you have with your insurer.
We think beautiful jewellery should be worn, not hidden away. If your insurance cover is not good enough to do this, get in touch – we’ll be happy to help.
How much does jewellery insurance cost?
The amount you pay for jewellery insurance depends on how many items you want to cover, their worth and the daily risks you face.
As you’d expect, the more your items are worth, the more your premium will cost.
At Nowell & Richards, we can often reduce the amount you pay by adopting a ‘portfolio’ approach to your insurance.
Place your car, home, jewellery, art and watches (or any other assets you want to protect) together as part of one insurance portfolio and you’ll usually benefit from better economies of scale.
What should I look for from an insurer?
As an independent insurance advisor who works on behalf of wealthy and high net worth clients and NOT insurance providers, we think there are three important factors to take into account.
When arranging specialist jewellery insurance, you should consider:
- Heritage and history of the company
- Level of jewellery insurance expertise
- Track record in settling high-value claims
We would also recommend using a chartered insurance broker – as this is the recognised industry mark for excellence.
Why should I choose Nowell & Richards?
Since our formation in 1958, Nowell & Richards has protected exclusive items of high-value jewellery.
Today we understand the risks faced by the owners of expensive pieces better than ever before – and can protect individual valuable items worth up to £2m.
Jewellery insurance should not be restrictive or dictate when, where or how often you can wear your favourite pieces.
By taking your lifestyle, wearing habits and the risks you face into account, we can provide the most appropriate tailored protection – and the reassurance you need.
When tailoring your jewellery insurance policy, we will:
- Analyse and investigate the broader market
- Offer impartial advice, experience and expertise
- Only recommend the most appropriate partner
- Provide the best policy, not the cheapest
- Build a long-standing relationship with you
- Continually monitor the market and act as a trusted advisor
- Be proactive & take the lead should trouble occur
How easy is it to make a jewellery insurance claim?
Reputable insurance providers make it as easy as possible to pursue a jewellery claim.
Usually, you’ll have to use one of the following options:
- Make a claim on the phone
- Submit a claim online
- Fill out a claim form
If you’re making a claim for theft, the Police MUST be notified and we would advise submitting a theft report immediately.
How do Nowell & Richards deal with claims?
At Nowell & Richards, we don’t just provide a policy and forget you.
We appreciate that claims are the most important part of our relationship.
To most people, an insurance policy is a piece of paper.
To us, it’s a promise to…
- Immediately be on hand to resolve any issues
- Ensure lost items are replaced – quickly
- Expertly repair damaged items
- Deal with difficult claims on your behalf
If this sounds like a proactive approach which could work for you, get in touch for a free jewellery insurance quote now!
What if my jewellery loses value after repair work?
If a piece of jewellery becomes damaged and needs to be repaired, its market value could potentially fall.
Although we will cover you for such a loss and provide this protection as standard, other insurers definitely will not.
Before taking out any policy, find out whether you’ll be covered in this scenario.
Will jewellery be covered on my home insurance?
If your jewellery is stolen or goes missing, you might be covered under your home contents insurance.
However, there will usually be an upper limit for valuables which will determine how much you can claim. In most cases, the single item limit is up to £2,000 – potentially rising to £7,500 if you inform them about a specific item.
Many standard market insurers also do NOT provide cover for personal possessions when away from the home. It’s an optional extra, along with accidental damage, so make sure you know exactly what you’re paying for.
Do I actually need jewellery insurance?
Due to its aesthetic appeal and obvious beauty, jewellery has always proven to be an attractive investment.
This is probably because pieces can not only be worn and enjoyed, they also have the potential to appreciate in value.
Whether you ‘need’ insurance basically depends on your lifestyle, assets, family and propensity to risk. It is usually also influenced by your ability to replace valuable items without placing yourself under financial strain.
Some people value the protection and reassurance which jewellery insurance offers.
Others view it as a nuisance or unwanted purchase. In our experience, this is usually because they don’t appreciate the full protection it can offer.
Ultimately, the decision about whether to take out jewellery insurance depends on your own personal view – and whether you think it’s a worthwhile investment.
If you own a number of rings, bracelets or necklaces, specialist jewellery insurance can prove to be a sensible option – especially if your items are extremely valuable, either from a monetary or sentimental aspect.
Losing or damaging valuable pieces can often cause a great deal of stress and worry for owners of precious jewellery. But with the right protection in place, you can have complete peace of mind should the worst ever happen.
As outlined above, it’s sometimes much cheaper to protect jewellery as part of an insurance ‘portfolio’ which includes cover for your car, home, art, collectables and any other assets you value highly.
To discover if this approach is right for you, or to obtain a specialist jewellery quote, call 01785 255514 to discuss your options.