Admiral Home Insurance has announced that the value of gold has risen by 16 per cent in just one year, and by nearly double (48%) in the last 10 years. This means anyone with treasured trinkets such as engagement rings, gold chains and luxury watches will have increased in value, potentially by thousands of pounds.
While the increase in value is a win, especially if you have a long-forgotten item tucked away in a box or drawer it’s also worthwhile remembering to check your insurance cover for those golden treasures as the rising value of gold and precious stones could mean they are underinsured.
Admiral’s data, which has been collected in partnership with independent jewellery claims expert LMG Jewellery, reveals that over the course of just one year the value of an 18ct white gold solitaire 0.50ct diamond ring has increased by £400, while a white gold 3ct diamond engagement ring has increased by as much as £7,300. Similarly, a Rolex watch worth £4,200 in January 2021 could now be worth £450 (11%) more just 12 months later.
Admiral is advising Brits to check the details of their home insurance policies and have up-to-date valuations to make sure that valuable items are suitably covered should the worst happen, and they have to make a claim due to theft or loss.
Those who have owned items for a long time and have failed to update the valuations on their policy are likely to be at an even higher risk of being underinsured.
Admiral and LMG Jewellery’s data shows a one-ounce gold chain has almost doubled in value from £1,150 in 2013 to £2,240 in 2023 - an increase of 95 per cent. This means someone who added this item to their insurance policy 10 years ago would now require more cover if they haven’t updated the value on their insurance policy.
A white gold diamond tennis bracelet worth £1,380 in 2013 could also now be worth an additional £620, while a 0.5ct diamond solitaire engagement ring has increased in value by £600.
The value of luxury designer watches has also climbed significantly over the last 10 years, with an entry-level priced Omega valued at £1,140 in 2013 now likely to be worth over £2,130 - an 87% increase (£990). An entry-level priced Rolex watch worth £3,250 10 years ago could also now be worth 43 per cent more, while a Cartier watch has increased in value by 35 per cent.
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 per cent. 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 added: “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.
“Adding high value items to your home insurance policy is really important, so if you’re planning to make a big purchase for yourself, or perhaps for a loved one ahead of Valentine’s Day, make sure you get it covered on your policy as soon as possible.”
Top tips to make sure your jewellery is covered
Admiral and LMG Jewellery have shared tips for making sure your valuable jewellery is properly covered:
- Update valuations - It’s important to make sure you know how much precious items are worth, as this can change over time. The best way to do this is with a valuation, and valuation services are offered by most high-street jewellers and specialist providers. You can share updated valuation documents with your insurer, and amend your cover if needed.
- Keep all receipts - Where possible, make sure you keep all receipts and documentation relating to your items after you buy them.
- Create an inventory - Keep an updated inventory of your items, including good quality photographs, somewhere safe, such as online on the cloud.
- Know your item - Knowing your item is vital for ensuring you have the correct level of cover, so make sure you provide as much detailed information as possible. This could include information on stone clarity and size, stone type and whether it is lab grown or mined, and metal type.
- Check your policy - With Admiral Home Insurance, you will need to declare any jewellery as a ‘specified item’ on your home insurance if it’s worth more than £1,000. If your jewellery is worth £1,000 or less, then it will be automatically covered within your home if you have contents cover. If you only have buildings insurance and don’t have contents cover, then you might want to consider taking out a contents policy. Check the details you have with your insurer to be clear on what’s covered.
- Store your items safely - Make sure your items are stored safely when they’re not being worn, such as in a lockable box.
Find out more about jewellery insurance and cover for your jewellery and engagement ring on the Admiral website here.
To keep up to date with the latest personal finance news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out daily, Monday to Friday - sign up here.
READ NEXT
DWP confirms payment schedule for new cost of living cash support
People on low income struggling with money this month could be due cash help from local council
Full list of one-off payments for parents and households due over the next 12 months
Check your eligibility for new £50 heating payment due to be made next month
New website helps Scottish households check for extra financial support
