Don’t pay a high price for love this Valentine’s Day
Britons planning to seal their love with a romantic proposal next week could be leaving themselves exposed by not putting adequate insurance cover in place for their engagement rings.
According to research by specialist insurer Hiscox, the average amount spent by professional couples on engagement and wedding rings in the UK now stands at over £2,600 but can be much more. In fact, one in ten (10%) admit to spending over £5,000 on their engagement and wedding rings.
However, despite making such a significant investment, over a quarter (28%) of couples say they have not even considered insurance when it comes to their cherished items and over one in twenty (7%) don't know if their rings are covered by their existing home insurance policy.
Simon Goddard, household insurance expert at Hiscox, comments: "For those planning to pop the question, insurance is unlikely to be a top priority. But the value of engagement and wedding rings is often substantial, so once you've got the answer you were hoping for, look at your home insurance policy to make sure you've got adequate cover for loss and damage."
Those couples who have already tied the knot should think about the current value of their rings to make sure they have got enough cover. According to data from a leading jeweller, one couple who bought an engagement ring for £222,000, found it to be worth a staggering £600,000 two years later.
Simon Goddard adds: "With the price fluctuations in the platinum and gold markets, many rings are likely to have increased in value. This is an extraordinary case but it highlights the importance of having regular valuations to ensure sufficient cover is in place. One in six (16%) couples admit they have no idea how much their rings are currently worth, which means they could be underinsured and at risk should they ever need to make a claim."
Hiscox's insurance checklist for jewellery:
Contact your home insurer to let them know about your new rings - we ask clients to inform us about new possessions within 60 days of acquisition
Check whether your rings and other valuable items of jewellery are covered when you are outside of the home. Hiscox covers client's possessions in the home and whilst temporarily removed away from the home wherever they are in the world as standard (for up to 60 consecutive days with Hiscox 505 home and contents insurance and an unlimited number of days for Hiscox 606 high value home insurance)
Get a professional valuation every three-five years to make sure you have the correct level of insurance cover and leave a copy with your bank, solicitor or insurance broker
In the policy, look for covers such as agreed value, where each item is listed and the value is agreed - either by index linking annually (taking into account market fluctuations) or fixed as at the last valuation. This can not only make the claims process quicker, but with the Hiscox policy for example, gives you the flexibility to decide whether you want the item repaired, replaced, or if you want to be paid out on the value of the damage
Visit hiscox.co.uk for more information about our home insurance products.