Home insurance may need reviewing as family jewels soar in value

NFU Mutual is urging homeowners to get their jewellery professionally valued as soaring gold prices have more than doubled the street value of some family keepsakes in recent years.

Many people may be surprised to know the average value of gold in homes across Britain is thought to be more than £1,100. This means many owners are likely to be underinsured and potentially unable to replace their most treasured possessions should they be misplaced or stolen.

Paul Richardson, home insurance specialist at NFU Mutual, said: "If the contents of some jewellery boxes needed to be replaced, some owners may be devastated to find their current insurance policy would only pay out a fraction of the cost of replacements. Sentimental items such as engagement rings and heirlooms passed down through the family are typically underinsured as many current owners have never had them valued."

Nicholas Major, Chairman of the National Association of Goldsmiths, agrees that it is vital people get their jewellery valued by a member of the Institute of Registered Valuers to avoid future upset.

"People who haven't had their jewellery valued in the last five years need to seek advice from a registered valuer immediately. Gold prices have more than trebled since 2004 and the price of gemstones has also varied. Some people may be in for a shock, but better to be surprised by the true value now than be handed a bombshell when trying to replace lost or stolen valuables."

Earlier this month NFU Mutual re-launched its interactive online contents calculator to help ensure homeowners don't sell themselves short and that they get the right level of cover.

Mike Powell, Insight Analyst for General Insurance at Defaqto, the independent financial research company, pointed out the importance of including jewellery when calculating personal possessions.

"Valuables such as jewellery are important to remember when calculating home contents as they could make up a large chunk of any claim. An accurate record of jewellery can be invaluable should you need to make a claim and it's very useful to have photographs of any valuables in case they are lost of stolen."

Richardson of NFU Mutual, added: "Insurance policies need to be updated on a regular basis - every two years is a good rule of thumb. We understand the insurance needs of our members who often own a variety of household valuables and antiques, that's why our easy-to-use online contents calculator has been designed to help them create a more accurate picture of the true value of their possessions."

NFU Mutual home contents insurance achieved a maximum five-star rating from Defaqto, meaning home and contents insurance from NFU Mutual is some of the best quality cover in the market.

Homeowners interested in calculating a more accurate figure for the value of their personal possessions should visit nfumutual.co.uk.