Know the Basics About Contents Insurance for Engagement Rings and Jewellery

In the unfortunate event that something happens to these precious pieces, having insurance in place can make their loss feel not quite as severe.

Does Home and Contents Insurance cover jewellery?

It can, but it depends on your type of cover. Many Home and Content Insurance policies provide some level of cover for jewellery. Not every policy is the same though, so it’s important to check exactly what’s covered and how by reading the Product Disclosure Statement (PDS).

How much jewellery is covered by Home and Contents Insurance?

Your home and contents provider will generally set a limit on the amount you can claim for a piece of jewellery. The actual amount will depend on the provider and the policy you purchase, and you may find some policies don’t always cover the cost of the full item.

Some insurers might also put a limit on the amount you can claim back on a collection or set of jewellery. Let’s say you’ve insured your watch, engagement ring and diamond-encrusted dog collar. If all of these items were to get damaged in a fire, you may only be able to claim back a set figure. If you don’t like the sound of these limits, you can take out additional cover and specify the amount you want covered for each piece with most policies. This is likely to increase your premiums.

Do you need to list individual items on your cover?

On a contents policy, there’s two possible options for including jewellery:

• Unlisted items: if you don’t tell your insurer about specific pieces of jewellery you want covered, they’ll usually be treated as general contents under your policy. Most insurers will limit the amount you can claim for unlisted items such as jewellery. You should check the limits and terms of your policy.
• Specified or listed items: these are items that you’ve specifically requested to be covered by your insurer for a set amount, like your engagement ring. In many cases, insurance companies will ask for a valuation certificate to identify the item you want insured and to work out the value of the insurance and premiums. In some cases, you may be able to specify “portable” items which could be insured in some scenarios away from the home. You should check the limits and terms of your policy.

What’s not typically covered by Contents Insurance?

Ultimately, this depends on your provider and the level of cover you choose. Some common exclusions to look out for include:

• General wear and tear: Insurers generally don’t cover deterioration, rust, corrosion or bacteria.
• Inherent defects and mechanical failure: You may find most insurers won’t cover you for faulty design or poor craftsmanship.
• Illegal Ownership: This one is pretty explanatory. If you’ve illegally acquired it (aka stolen it), it’s a safe bet you won’t be able to get it insured.
• Lawful Confiscation: If the government, or any public authority, seized or confiscated your jewellery, most insurers won’t be able to cover you.
• Intentional Acts: If it becomes clear that you’ve misplaced your jewellery on purpose or someone in your family has done it for you, most insurers will deny these claims.
• Lost Jewellery: Some insurers may not cover a piece of jewellery that’s been lost, with no identifiable event. It’s important to make a claim as soon as it happens.

If you’re on holiday, Travel Insurance policies may help cover some jewellery items. Make sure you check what’s included before you jet off, as there are a number of common exclusions you should look out for.

What records do you need to make a claim?

To make a claim, you may need the following information:

• Proof of ownership: You’ll usually need to prove you actually own the piece of jewellery, so it could be a good idea to save your receipts. Some insurers might also ask for photographs of the pieces in your home.
• Proof of value: In some cases, you may need to get a jewellery valuation certificate, which describes an item in detail as well as its value. You can get these from many jewellers. Sometimes they’ll charge a fee for this service.
• Police report: If an item of jewellery has been stolen, you’ll need to provide a police report. Contact the police as soon as possible to report the theft.

How can I compare Contents Insurance for my engagement ring and/or jewellery?

If you don’t have Home and Contents Insurance or you want to compare* your policy against others from iSelect’s range of policies and providers, you’re in the right spot! Just call 13 19 20 and speak to one of our friendly consultants.