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Gold rush affecting home insurance cover

Gold rush affecting home insurance cover

Category: Home insurance

Updated: 27/11/2012
First Published: 07/09/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The soaring cost of gold means some home insurance policies may no longer be adequately covering the value of a family's jewels.

Homeowners have been urged to get their jewellery professionally valued after NFU Mutual warned that rises in gold prices could have more than doubled the street value of some family keepsakes in recent years.

With the average value of gold in homes across Britain estimated to be more than £1,100, many homeowners are thought likely to be underinsured and potentially unable to replace their most treasured possessions should they be misplaced or stolen.

"If the contents of some jewellery boxes needed to be replaced, some owners may be devastated to find their current insurance policy would only pay out a fraction of the cost of replacements," said Paul Richardson, home insurance specialist at NFU Mutual.

"Sentimental items such as engagement rings and heirlooms passed down through the family are typically underinsured as many current owners have never had them valued."

According to the chairman of the National Association of Goldsmiths, Nicholas Major, gold prices have more than trebled since 2004 and the price of gemstones has varied too.

"Some people may be in for a shock, but better to be surprised by the true value now than be handed a bombshell when trying to replace lost or stolen valuables," he added.

It is vital that home insurance policies be updated on a regular basis, with two years probably the longest period that should be allowed to pass between evaluations.

If you're overdue for a review of your home insurance policy, why not get an up to date quote using our home insurance comparison tool.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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