Jewellery is normally covered by Contents Insurance policies. These policies insure the contents of your home, including jewellery, for a wide range of unforeseen events.
There is a range of insurance policies available, providing varying levels of cover. Most insurance policies require individual items of jewellery, over a certain value, to be specified in your policy.
If items are not noted in your policy, cover is restricted to the amount of the limit e.g. a limit of $2,500 per item and $10,000 per claim. If you need more cover than this, you must ask for your jewellery pieces to be noted on your policy.
You should discuss the best option for your circumstances and any specific questions about jewellery insurance with your insurance company or broker.
There are a number of factors that can affect the value of an item of jewellery, including the currency exchange rate and the global price of gold and precious stones.
It is important to understand that any insurance claim will be settled based on the value of the item at the time of loss, up to the policy limit, or amount specified, not what it was previously purchased for or valued at.
Read your insurance policy carefully. Following a loss, insurance companies’ wordings may vary as follows:
- In the event of a loss insurers may direct you to a nominated jeweller to have your item(s) repaired or replaced.
- In the event of a loss insurers may allow you to nominate a jeweller of your choice subject to a fair and reasonable quotation to replace, repair or reinstate.
You can negotiate with your insurer to use your preferred clause. WE RECOMMEND YOU SELECT Option 2.
Obtain a jewellery valuation, in New Zealand dollars, from a qualified Jewellery Appraiser. Your Jeweller can assist you with this.
Unusual items, or those with a special sentimental attachment, should also be valued and noted on your policy. The Valuation should include a full description of each item and note their replacement and indemnity values.
Replacement Value is the cost of replacing an item of jewellery with a new piece of similar quality and specifications. Antique items are valued at the cost to purchase an equivalent on the estate jewellery market.
Indemnity Value is the cost to purchase an item of similar age, quality and condition in a fair market situation.
The value of most jewellery items will fluctuate over time due to age, wear and tear, changing fashions, the international value of gems and precious metals and the value of the New Zealand dollar.
For these reasons it is recommended that you have:
- items of jewellery appraised and revalued every few years
- receipts and valuations kept in a safe place, separate from your jewellery
- photographs or videos of each item to assist in identification and recovery if lost or stolen
- an inventory of all your jewellery kept at another location (other than your home) in the event of fire, flood or peril.