Insurers have warned that rising precious metal prices mean home insurance policies may not fully cover valuable jewellery.
With gold and silver prices having rocketed, there are triple risks for policyholders. Firstly, there's been a major rise in the number of thefts involving jewellery: Churchill Home Insurance says it now features in a third of all claims. Secondly, the price increases mean around 40 percent of theft victims find they are underinsured, for example when jewellery pieces now exceed the single item payout limit on their policy.
Thirdly, and potentially most seriously, if policyholders provided a valuation at the time of taking out the policy, the insurers may only pay out to this value, even if the item's current (higher) value is within payout limits.
Insurers and jewellery professionals are now urging customers to get regular valuations of their items, arguing that the cost of doing so is worthwhile given the potential risks of making a claim while underinsured.