There’s no one who wants to lose their jewellery, but if it does happen, having the right contents insurance will make the experience less painful. In order to avoid being underinsured if you need to make a claim on your diamonds and pearls, be sure to read the fine print.The good news is there are ways to cover expensive jewellery items for their actual value.
Jewellery is covered by home and contents insurance?
Most contents insurance policies cover jewelry, but they often have a limit that leaves the policyholder out of pocket if an expensive item is lost or broken.
As part of your contents insurance policy, you specify the amount it would take to replace everything as new, which is called the “sum insured,” but for valuable items like jewellery, the overall amount or individual item coverage is typically limited. Pairs and sets are typically covered under individual coverage. In general, earrings are treated as a single item when it comes to insurance.
Under home and contents insurance, you have two options for covering your jewellery:
- The exact nature of the problem is unknown.In this case, you fail to disclose specific items to your insurer, so they’re treated as part of your general contents.
- Cover that has been specified.You set the amount you want covered for these items. You may also be covered for accidental loss or damage away from home under some policies.
Is it a good idea to mention jewellery in your contents insurance policy?
You will need to specifically list on your policy any jewellery worth more than your insurer’s limit. It will raise your premium, but if you need to make a claim, you will not be out of pocket.
You might list some of your high-value pieces while leaving the rest off the list if you have many items and mostly keep them at home. A portable contents cover may also be a better option than listing an item you regularly leave home with.
Jewellery insurance for portable contents
For Jewellery insurance Australia you may need to add portable contents coverage to your policy if you want unlisted items covered away from home. It is important to note that the limits for portable contents might be lower than the limits for jewellery.
Using a portable contents cover, you can list some things while leaving other items out. The difference is that fewer things are covered, and the total insurance amount is lower.
While portable valuables may be covered away from home, there may be a limit to where and how long you can travel with them. You might have coverage for your jewelry if you take it overseas for 30 to 120 days.
Before taking jewelry overseas, check the terms and conditions of your home and contents insurance. For example, Suncorp-owned brands (including GIO, AAMI, and Apia) will only cover jewellery and watches when they are worn or in a safe outside of Australia and New Zealand.