Jewellery at risk in cost of living crisis

Jewellery owners across Shropshire have been warned they should double check the insurance cover they have in place as the cost of living crisis continues.

Elsa Mackay, from Henshalls Insurance Group in Newport, said research had shown that worryingly, 56% of jewellery owners could be underinsured.

“These results are particularly concerning in the current economic climate with the cost of living crisis continuing, as the risk of wealthy jewellery owners being targeted for theft is a growing issue.

“So it’s vital that anyone who owns valuable jewellery or watches should be vigilant and ensure their valuables are protected as well as they can be.”

Elsa said natural diamond reserves across the world were now depleting and lab-grown diamonds were becoming more readily available.

“They’re so good now too that it’s almost impossible to tell the difference, so that makes proving the value of the diamond you own even more important.

“A one-carat lab-grown diamond might be worth around £6,750 – but a one-carat natural diamond could be worth around £26,000. It’s a huge difference.

“So it’s not difficult to see why over 50% of jewellery and watches could be underinsured. And as a result, insurers may require documented proof of your diamond’s provenance and worth before they will add it to a policy or accept a claim.”

Elsa said it would be advisable for jewellery owners to seek out an authorised certificate from an approved valuations company that will give a clear description of the diamond, the materials and stones used, the cut, the clarity and the carat value.

“You should make sure your jewellery and watches are stored in a sturdy safe too that has been installed by an approved and recognised safe installer. And any jewellery or watches that you have that have diamonds on them – no matter whether they’re natural or lab-grown – should be regularly valued and the insurance adjusted accordingly.”