If you’re underinsured, you may be at risk of financial loss when an unexpected insurance event occurs and you need to rebuild your home or replace contents.
Home Insurance
How much should I insure my jewellery for?
Insurance for jewellery: How to cover engagement and wedding rings, watches and heirlooms
From how to insure an engagement ring to whether you’re covered if you leave the house with your jewellery on, here’s some important information about insuring engagement rings, wedding rings, watches and other jewellery items.
Jewellery items are precious. Whether it's a luxury watch passed down through generations, or a diamond engagement ring from a cherished proposal, some jewellery can have significant financial value as well as sentimental meaning.
Unfortunately, jewellery is also one of the top items that burglars like to steal.
RACV General Manager Home Bill Bloodworth says its important to check whether your contents insurance policy provides cover for your valuables.
"The last thing you need after an incident is to find out you are underinsured for your jewellery, so it's a good idea to check what you are covered for and consider if you need to increase any limits," he says.
Jewellery you can insure includes precious heirlooms. Image: Getty
How to insure your engagement rings, wedding rings, watches and other jewellery items
How do I insure my jewellery?
RACV Contents Insurance offers peace of mind if your jewellery is lost, damaged or stolen from inside your own home, for up to a total of $2,500 for listed events (see the Product Disclosure Statement). This includes rings (engagement rings and wedding rings), watches, bracelets, necklaces and medals.
It's important to understand that this automatic coverage of up to $2,500 is for all your jewellery and watches that you keep at home. If you wish to increase your cover for individual pieces of jewellery or a valuable watch that you keep at home or wear away from home, you may need Valuable Items Cover or Portable Items Cover, which are options you can add to your general RACV Contents Insurance policy.
Is there optional cover that I can add to my policy for extra protection of my jewellery?
RACV Insurance has a limit of $2,500 for jewellery and watches that's part of a General Contents Insurance policy. You can, however, increase your cover for jewellery and watches by insuring them as:
- Valuable Items Cover in your home - With this optional cover, you can choose to insure jewellery items and watches for more than the $2,500 that RACV Insurance would normally pay for them when they are part of your General Contents Insurance. For example, you may decide to insure your jewellery and watches under Valuable Items Cover for $10,000. If you want to insure any one item for more than $10,000, then you need to list the item and its sum insured, and RACV Insurance may ask you to provide a written valuation.
- Portable Items Cover - This optional extra covers the jewellery item(s) listed on the policy anywhere in Australia and New Zealand, and up to a maximum of $10,000 overseas.
Valuable items Cover and Portable Items Cover are shown separately on your current Certificate of Insurance to your Contents sum insured.
How much should I insure my jewellery for?
How much you insure your jewellery for will depend on the value of your individual jewellery items, and your policy, but it needs to be based on how much it would cost to replace the item/s at today's prices.
If you underinsure your jewellery, you may be caught short if you need to repair or replace it. If you insure your jewellery for more than it costs to repair or replace it, you’ll only be able to claim the actual cost, minus your excess. It may be worthwhile getting your jewellery valued by an expert who can provide you with documentation.
You also need to be aware that any change to your policy may result in a change to your premium.
Am I covered if I leave the house with my jewellery?
It's important to check if your insurance policy covers jewellery items outside the home, as you may need to add optional cover to your policy.
With RACV Home and Contents Insurance, a jewellery item is only covered outside of the home if you choose to add Portable Items Cover for that jewellery. Portable Items Cover helps cover the item(s) both inside and outside the home.
"Portable Items Cover should be considered for jewellery items that you regularly wear outside the home, or before you take them with you on a holiday," says Bloodworth.
More: How to insure portable items that leave the home
Am I covered if I go overseas with my jewellery?
If you have taken out Portable Items Cover for your jewellery, the most RACV Insurance pays is $10,000 for all items while you are overseas.
More: Common holiday items you might forget to insure
Watches can be insured with RACV Contents Insurance. Image: Getty
Can I add a jewellery item like an engagement ring to my Contents Insurance Policy later?
"Most insurers understand that your needs can change over time, and generally you can add additional cover to your policy when you need it and don’t need to wait until renewal," says Bloodworth. "A trigger to check or add cover to your contents insurance policy could be after a big purchase, such as an engagement ring or a new watch."
Bloodworth adds that it's a good idea to do an annual check of your policy to help ensure it's still right for you. "An annual check on your contents coverage helps to ensure your sum insured is enough to help replace items in your home with brand new ones at today’s prices - in particular with collections that can increase in value over time," he says.
More: What does sum insured mean?
Does Contents Insurance cover for theft or damage?
A general RACV Contents Insurance policy covers jewellery and watches that are inside your home for a total of $2,500 for listed events, including theft and certain types of damage. See the Product Disclosure Statement for details on listed events.
Are there any types of jewellery that aren’t covered?
Most types of jewellery, including watches and medals, can be covered under RACV Contents Insurance. However, loose gems and unset gemstones are not considered jewellery under this policy.
What happens if I need to make a claim? What information is needed?
RACV Insurance claims can be made online or by calling 13 19 03.
When an insurance claim is made, you may be asked to supply proof of ownership and value for an item, such as (but not limited to) a receipt, valuation or photograph.
The information provided is general advice only. Before making any decisions please consider your own circumstances and the Product Disclosure Statement and Target Market Determinations. For copies, visit racv.com.au. As distributor, RACV Insurance Services Pty Ltd AFS Licence No. 230039 receives commission for each policy sold or renewed. Product(s) issued by Insurance Manufacturers of Australia Pty Ltd ABN 93 004 208 084 AFS Licence No. 227678.
