Do I Need a Jewellery Valuation for Insurance?

In most cases, yes. The majority of UK home insurance policies have a single item limit of £1,000–£2,000. Any item worth more than this threshold needs to be individually specified on your policy — and your insurer will almost certainly require a professional valuation to do so.

Without a valuation

Items covered only up to single-item limit
Claims may be rejected or under-paid
No evidence of item's existence or value
Insurer may dispute your claim entirely

With a valuation

Items specified for their full replacement value
Documented evidence for claims
Photographs and detailed descriptions on file
Smooth, faster claims process

Even if your insurer doesn't explicitly require a valuation for lower-value items, having one gives you documented proof of what you own — invaluable if you ever need to make a claim.

What Is “Replacement Value”?

An insurance valuation states the replacement value of your item — the cost of purchasing a new, equivalent piece from a retail jeweller or authorised dealer at today's prices. This is deliberately higher than what you'd get if you sold the item (the “open market value”), because it reflects the full retail cost of making you whole again.

For branded items like Rolex or Cartier, replacement value means the cost of purchasing an equivalent piece from an authorised retailer or, if the item is discontinued, from the secondary market at current market prices.

The Valuation Gap: Are You Under-Insured?

Rising precious metal prices mean many people are under-insured

Gold prices have risen approximately 15% per year recently. An item bought for £200 in the 1990s could easily command a replacement value exceeding £1,000 today. If your coverage is based on the purchase price or an old valuation, you could face a significant shortfall in a claim.

The “valuation gap” is the difference between your current insurance coverage and the actual replacement cost of your items. Common causes include:

Precious metal price increases (gold, platinum, silver)
Brand price adjustments (Rolex increased gold model prices by up to 14% in 2025)
Using purchase price instead of replacement value
Outdated valuations (more than 3–5 years old)
Inherited items never professionally valued

Insurance vs Probate vs Resale Valuations

Not all valuations are the same. The type you need depends on the purpose:

Type	Value Basis	Used For
Insurance	Replacement value (retail cost of equivalent new item)	Home insurance, specialist jewellery insurance
Probate	Open market value (what a willing buyer would pay)	Estate valuation for HMRC, inheritance tax
Resale	Realisable value (what you'd actually get if selling)	Pre-sale research, divorce settlements

Insurance values are typically 30–50% higher than probate values for the same item. Always make sure your valuation states the correct basis of value for your needs.

Do I Need Specialist Jewellery Insurance?

Standard home insurance often has limitations for high-value jewellery: single-item caps, requirements to keep items in a safe, limited cover outside the home, and high excesses. Specialist jewellery insurers offer:

Agreed value — the insured amount is agreed upfront, so there's no dispute at claim time
Worldwide cover — protection when wearing items abroad
New for old — replacement with a brand-new equivalent, not a depreciated value
No safe requirement — for reasonable-value items
Accidental damage — including loss of stones

Specialist cover is particularly worth considering for items valued above £5,000, collections, or pieces you wear regularly outside the home.

How Often to Update Your Insurance Valuation

Every 3–5 years (minimum)

Standard recommendation for all jewellery. Ensures your coverage keeps pace with market changes.

After major price movements

If gold prices jump, or your watch brand announces significant retail price increases, don't wait — update your valuation.

Jewellery Valuation for Insurance