Rising metal prices leave Brits underinsured

A staggering 42 per cent of engagement rings are uninsured and a further 16 per cent of ring owners are unsure if they have insurance, according to new research from Abbey Home Insurance.

As an estimated 1.8 million Brits prepare to propose to their partners this year, Abbey Insurance is urging these “proposers” to arrange insurance for their engagement rings as soon as they purchase them - or to check carefully that they are fully covered on their existing insurance policies. Approximately 27 per cent of engagement rings are covered by existing policies, according to Abbey.

Abbey also advises current jewellery-owners to review their home contents insurance regularly to ensure that rising precious metals prices don’t leave them underinsured. Abbey’s research suggests that on average people review their home contents insurance once a year (42 per cent) – but with the price of gold having risen 32% in 2007 alone and platinum also hitting record highs, Abbey warns this might not be enough.

Lloyd Wilson, Head of Abbey Insurance, said: "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 billion planning to propose this year.

“Rising precious metals prices could also result in lack of full cover, so we would recommend that people review their home contents insurance at least every six months to ensure that all their valued items and heirlooms are fully covered.”

The average British household has approximately £1,785 worth of jewellery - £44 billion in total. But Abbey’s research reveals that one in 10 Brits doesn’t have any home contents insurance at all and 18 per cent review their contents insurance cover less than once a year.

Abbey’s research also reveals:

Engagement rings in the North of England and Midlands are the most likely to be uninsured
75 per cent of Brits own some form of valuable jewellery
14 per cent of Brits don’t have any form of insurance for their jewellery, with the Scots the least likely to insure their trinkets

For more information about Abbey’s home insurance, visit abbey.com.