Lost and Found: Uncovering the Truth About Claiming for Jewellery on Home Insurance

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Dean Goodwin
Group Director
Last Updated
1 October 2024

Can You Claim for Lost Jewellery on Home Insurance? – Losing a cherished piece of jewellery isn’t just a financial loss; it’s often a deep emotional blow, especially when it has sentimental value.  Fortunately, for homeowners, home insurance policies typically provide some level of coverage for lost or stolen jewellery, albeit with certain limitations and conditions.

Understanding your home insurance coverage limits, the specific procedures for claiming lost jewellery, and how to ensure that your precious items are adequately protected under your policy are crucial steps in turning your potential despair into a managed resolution and answering the question, Can you claim for lost jewellery on home insurance?

Can You Claim for Lost Jewellery on Home Insurance: Fast Facts

  • One in three people considers their engagement ring to be their most valued possession, highlighting the emotional and financial importance of jewellery for many UK residents.
  • Many standard home insurance policies have a single-item claim limit for jewellery, ranging from £1,000 to £2,000. This means that more expensive pieces may be underinsured.
  • The average value of an engagement ring in the UK is £1,800. This exceeds the typical single-item home insurance claim limit of £1,000 to £2,000 on many standard policies.
  • An analysis of 2017 claims data shows that approximately £750,000 worth of jewellery is stolen every day in the UK.
  • One in four people in the UK do not have home contents insurance to cover the loss or theft of jewellery at home.
  • Around one in seven people do not have additional cover for personal possessions outside the home.

These statistics underscore the importance of having adequate insurance coverage for jewellery, as many standard home insurance policies may not provide sufficient protection for high-value items. UK residents must review their policies and consider additional coverage if necessary.

can you claim for lost jewellery on home insurance

Can You Claim for Lost Jewellery on Home Insurance?

Understanding Details of Jewellery Coverage in Home Insurance Policies

At the outset, it’s important to clarify that most home insurance policies include jewellery coverage as part of the personal property or contents coverage. However, there’s a significant catch; there are usually caps or sub-limits for high-value items, including:

  • jewellery,
  • watches,
  • heirlooms.

These sub-limits may fall significantly short of the actual value of your items.

How to Determine Your Policy’s Claim Limit for Jewellery

To find out exactly how much coverage you have for jewellery, you’ll need to review your policy documents closely or contact your insurer directly. Look for terms like “special limits of liability” or “special personal property coverage”, which will indicate the maximum amount the policy will pay for lost or stolen jewellery.

Making a Claim for Lost Jewellery

Overview of the Claim Process

Filing a claim for lost jewellery involves several key steps:

  1. Notify Your Insurer: Contact your insurance company immediately to inform them about the loss.
  2. Document the Loss: Provide documentation, including purchase receipts, photos, appraisals, or any repair records to substantiate your claim.
  3. Claim Assessment: A loss adjuster sent by your insurer will assess the claim, determine the value of the lost item, and approve the claim based on your policy terms.

Understanding Coverage Limitations and Exclusions

It’s equally important to be mindful of policy exclusions and limitations. For instance, the insurer might deny the claim if the loss is due to carelessness or leaving the jewellery unattended in a public place. Knowing these terms beforehand can save you from unexpected disappointments.

Ensuring Adequate Jewellery Coverage

claiming for lost ring on home insurance

Relying solely on the basic coverage provided under home insurance policies may not be sufficient for high-value claims, such as claiming for a lost ring on home insurance.

Scheduling High-Value Jewellery

Scheduling items or adding specific endorsements to your policy for individual high-value pieces offers a way to secure coverage that matches the true value of your jewellery without the restrictions of generic sub-limits.

Supplementing Home Insurance with Jewellery Insurance

For those with extensive or particularly valuable Jewellery collections, it might be wise to consider a specialist jewellery insurance policy. These policies offer broader coverage, including accidental loss or damage, often with the benefit of worldwide protection.

Stolen Jewellery Insurance Claim

Insurance claims do not always resolve how policyholders would like, and this case study of a commercial theft insurance claim highlights how insurers can deal with claims at the policyholder’s expense.

A jeweller had £2,225 worth of goods stolen. After contacting their insurers (Legal and General) to make a stolen jewellery claim, the insurance company only offered them £1,257 in cash to replace what they had.

Or the absurd offer of vouchers in full amount to use in a different jewellery store!

If the owner were to take the cash settlement in this business theft insurance claim, they would suffer a 42% loss compared to the claim’s true value. This does not include the cost of having all the broken furniture reinstated.

Rebecca Rutt, of This is Money, replies;

“Insurance is all about providing cover in worst-case scenarios, such as your house being burgled and expensive valuables being stolen. In case this happened, when you went to claim on your contents insurance, you were given a significantly lower amount if you chose to take the sum in cash. As you took out the insurance to cover the whole value, it seems strange you would lose so much if you took the cash instead of the vouchers.”

Insurers often look for ways to pay out the minimum sum of a claim. In this stolen jewellery claim, they were probably able to get a discount voucher from that other jewellery store. That voucher would be around the same value as the cash settlement they had offered.

Sometimes, an insurer offers vouchers – this is often the case with jewellery – which can be a surprise for consumers who may have expected cash instead.

Whether this is fair is likely to depend on whether the insurer is able to offer a suitable replacement for the item and on the terms of the policy.

How Loss Assessors Like Oakleafe Claims Can Help

Loss assessors would examine the insurance policy and determine whether a voucher is a valid form of payment to achieve a better result in this jewellery claim.

The loss assessor can also ask the insurance company how they are justifying this sum.

The objective is to get the insurance company to reconsider its position, but unfortunately, this does depend on the policy terms and conditions. Burglary damage can also be considered part of the claim, as the business must be reinstated to its pre-loss condition by replacing any damaged sales equipment or displays that the burglars may have broken. There may also be a business interruption claim if the store was forced to close as a result of the theft or damage.

What Oakleafe Clients Say:

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Our insurance claim professionals will explain the claim process to ensure you understand your options.
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Can You Claim for Lost Jewellery on Home Insurance: Conclusion

Can You Claim for Lost Jewellery on Home Insurance? – Understanding the ins and outs of claiming lost jewellery on your home insurance can make a world of difference in times of distress. It is imperative for homeowners and tenants alike to familiarise themselves with their policy’s terms, actively manage their coverage needs, and consider augmenting their protection with scheduled items or separate jewellery insurance where necessary.

Key Takeaways:

  • Most standard home insurance policies only include coverage for items inside the home.
  • Jewellery may need to be listed separately on the policy if its value exceeds the single item limit, typically over £1,000.
  • The following items generally fall into the high-value category:
    • Laptops
    • Jewellery
    • Cycles
    • Watches
    • Televisions
    • PC’s
    • Musical instruments
    • Photographic equipment
    • Musical instruments
    • Photographic equipment
    • Mobile phones
    • Hearing aids
  • Many of these items are portable or designed for use outside the home.
  • The typical home and contents insurance policy does not cover loss or damage outside the home.
  • For coverage outside of the home, you will need personal possessions covered.
  • For specialist jewellery cover, consider jewellery insurance.

By taking proactive steps to ensure your treasured items are adequately covered, you can afford yourself peace of mind, knowing that even in the unfortunate event of loss, you are well-prepared to handle the situation. Don’t hesitate to review your policy today and make any necessary adjustments to safeguard your valuable jewellery.

We Can Help

Oakleafe Claims have represented policyholders and managed their insurance claims since before the First World War. We have vast expertise and experience in both domestic and commercial insurance claims with thousands of satisfied policyholders who have received their deserved insurance settlement. With no upfront fees required, our internal data shows that insurance claims managed by professional loss assessors like Oakleafe can expect a settlement up to 40% higher than claims managed by the policyholder.

Contact Oakleafe Claims today for your complimentary, no-obligation consultation with our insurance claim professionals.

What Oakleafe Clients Say:

Book your complimentary consultation with our insurance claim professionals.

Our insurance claim professionals will explain the claim process to ensure you understand your options.

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