Precious metal prices leave jewellery lovers underinsured

by Gill Montia

Story link: Precious metal prices leave jewellery lovers underinsured

The soaring price of gold and other precious metals could leave some jewellery lovers underinsured.

Household insurers are urging their customers to check the contents of their safes and jewellery boxes to make sure they have adequate cover.

The recent turmoil on the global financial markets has pushed the gold price through several psychological barriers and predictions that it will exceed $1,000 oz during 2008 are taken seriously.

For many, personal jewellery is now worth considerably more than its purchase price or even a valuation undertaken this time last year.

Those in a romantic frame of mind can be particularly at risk; Lloyd Wilson, head of insurance at Abbey, comments: “The number of people who don’t think about insurance for their engagement rings and other precious items is quite staggering. With the average engagement ring costing around £1,200, it’s important to arrange insurance immediately if you’re one of the 1.8 million planning to propose this year.”

According to Abbey, only 27% of engagement rings are covered on existing home contents insurance policies, a serious oversight given that they are sometimes hurled at their purchasers.