Contents insurance for jewellery

Insurance can cover the cost of repairs or replacement if your item is lost or damaged as a result of an insured event. However, we all have different requirements when it comes to insuring jewellery, be it an engagement ring, an antique watch or a 100-year-old heirloom. You should consider:

• Whether cover for your valuable items is enough under a contents policy
• Whether you need to add cover if you take your pieces overseas
• What is excluded in your policy, and if that leaves your jewellery vulnerable.

Your precious jewellery can be covered under:

• A contents-only insurance policy
• A combined home and contents insurance policy.

However, make sure you always check the Product Disclosure Statement (PDS) for the full details of a policy before you buy.

Your home and contents insurance policy can cover your jewellery for loss and damage by specified insured events such as fires, storms, theft, vandalism and more. You may have the option of increasing the cover limit for certain pieces if their replacement value exceeds the limit of the policy, although this may cost extra on your premium. The following cover may also be available as optional extras for an additional premium:

• Accidental damage cover
• Portable items cover for when you wear your jewellery out to an event
• Unspecified/specified cover for any highly valuable items.

If your precious jewellery is worth more than the coverage limit set by the sum insured amount in your contents insurance policy, you may have the option of specifying certain items for a higher amount to reduce the chance that items are underinsured.

There are payout limits on what you can claim for jewellery with a contents insurance policy. For example, you may be able to claim up to $2,000 for jewellery damaged by or lost in an insured event. But if your pieces are worth $2,500, what do you do then?

• Specified contents cover provides cover for contents specifically listed on the policy for an amount above the policy limit. This cover is for items that mainly stay at the insured address. This cover will incur higher premiums when added to your policy.
• Specified personal effects cover also provides cover for contents specifically listed on the policy for an amount above the policy limit. This cover is for items that mainly get taken away from the insured address, and it can also be called portable valuables cover. Often, if you take out this cover for an item, you don’t also have to take out specified contents cover as this cover may also apply while he insured possessions are in the home.
• Unspecified cover provides umbrella cover for different types of items. Unspecified cover added to your policy will be limited so check the policy limits to ensure you have adequate cover. It may only be up to a certain dollar amount.

Got a few jewellery items that you love and constantly wear? You may want to consider portable contents cover (also known as personal effects cover). This can insure valuables that you take out of the home, but keep in mind it might cost extra to add to your policy.

You should read through your PDS so you know exactly what is and isn’t covered.

Some contents insurance policies cover your belongings while overseas, though only for a limited time. If you’re taking some special items from your collection on your travels, be sure to check the PDS for details on whether you will have worldwide coverage and for how long it may last.

However, if your contents insurance only covers your jewellery while you’re in Australia, you may need to purchase portable contents cover as well if you’re taking them overseas with you.

Alternatively, you can compare travel insurance policies through Compare the Market to find worldwide cover for your belongings while on holiday.

Personal heirlooms can be expensive, and also hold great sentimental value. Jewellery cover through contents insurance provides peace of mind as it protects you against unexpected events like damage, theft and losing your precious gemstones while at home.

The best thing about contents insurance, however, is that your belongings and your jewellery can be covered under one policy. As such, contents insurance can be a simpler solution for anyone who wants to protect all their belongings, not just the most valuable ones.

If you have a bespoke piece that’s a one-off, it’s essential to make sure you have it valued to avoid being left underinsured in case it needs to be repaired or replaced.

General wear and tear that lowers the value of your diamond ring is typically not covered by insurance for jewellery. Additionally, you may not be covered in scenarios like leaving your home unlocked, the jewellery being lawfully confiscated by authorities or if it was defective at the time of purchase.

For a full list of exclusions, you should always read the policy PDS. As well as events in which your jewellery won’t be covered, it will also outline any items that aren’t covered by your insurance for jewellery and contents cover.

If your jewellery is damaged, lost or stolen in an event that’s covered by your policy, you’ll need to contact your insurer to make a claim. You may need to provide supporting evidence with your claim, which can include police reports, receipts, valuation certificates or photographs of your collection.