Brits urged to check their gold jewellery and watches as prices double

The value of gold has increased by 16% in the last year alone and by 48% in the last 10 years, according to Admiral Home Insurance. 

For that reason, the cost of engagement rings, luxury watches and gold chains could have substantially increased in value - even by as much as thousands of pounds. 

All of this sounds like good news but it does mean that we need to check our insurance to make sure that our golden trinkets are still covered despite the increase. 

Brits have been urged to check their home insurance policies following the rise in gold prices ( Canva) (Image: Canva)

Admiral Home Insurance urges Brits to check their jewellery after gold price rise

Admiral - in partnership with independent jewellery claims expert LMG Jewellery - has crunched the numbers to see how much our treasures could have risen in value. 

In January 2021, a Rolex watch was worth £4200 but today it could be worth 11% more - a further £450.

Meanwhile, an 18ct white gold solitaire 0.50ct diamond ring has increased by £400 and the worth of a white gold 3ct diamond engagement ring has risen by as much as £7,300. 

Following the increase, a one-ounce gold chain would have been worth £1150 in 2013 but a decade on, its value has jumped 95 per cent and comes in at £2240.

An increase that would require the owner to update its value on their insurance policy to ensure it's still covered.

Therefore, Admiral has advised that we check our current home insurance details so that our valuables have accurate, up-to-date valuations and are suitably covered should something happen.

People who have owned these treasures for a long time and have not updated their policies are more likely to be at an even higher risk of being underinsured.

Admiral and LMG Jewellery have shared their tips on how to make sure your jewellery is covered. ( Canva) (Image: PA)

Noel Summerfield, head of household at Admiral Insurance, said: “Watches and jewellery are often valuable, both financially and sentimentally, so it’s really important that people make sure they are properly covered should the worst happen, and they need to make a claim.

“The price of gold, precious metals and diamonds has been on an upward trajectory for the last 10 years, so if your jewellery and watches have been insured for a long time and you’ve never thought to check if the value has gone up, now is the time to make sure you’ve got the level of cover that you need.

“In fact, we’ve even received claims from customers who haven’t updated the value of their items since the 1980s, with some pieces of jewellery increasing in value by over 700%.

"Providing up-to-date valuations to your insurer is vital for making sure that if you do have to make a claim, you will be covered for the full value of your items.”

He continued: “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 fairly regularly and if it changes, you should update your policy to make sure you’re fully covered.

"It’s easy to get an updated valuation, and most high street retailers will offer it as a service."

Mr Summerfield urged that "adding high value items to your home insurance policy is really important" and that you should "make sure you get [them] covered on your policy as soon as possible.”

The value of gold has risen by 16% in just one year according to Admiral Home Insurance. ( Canva) (Image: Canva)

How do you check your jewellery is covered?

Admiral and LMG Jewellery have shared their five top tips for ensuring your jewellery is covered by your insurance policy:

1. Update valuations - Most high-street jewellers and some specialist providers offer valuation services and they can tell you how much your items are worth. You should then use these updated valuation documents and send them to your insurer so that you can amend your cover if required.

2. Keep your receipts and know your item - Hold on to all your receipts and documents concerning your items where you can. You should also keep a detailed account of your item with information on metal type, stone clarity, size and type for instance to ensure you have the right cover.

3. Create an inventory - Using good quality images, create and update an inventory of your items somewhere safe like on the Cloud.

4. Check your policy - Under Admiral Home Insurance, you need to declare any jewellery as a ‘specified item’ on your home insurance if it’s worth more than £1,000 - below this, it will be automatically covered within your home if you have contents cover.

However, if you only have buildings insurance and don’t have contents cover, you may wish to consider taking out a contents policy and checking the details you have with your insurer to be clear on what’s covered.

5. Store your items safely - Store your treasured items in a safe place when you aren't wearing them including within a lockable box.