The recent rises in the price of gold are one of the contributing reasons being blamed for an increase in home insurance claims for theft.
Data recently released by Churchill Home Insurance reveals that the number of claims of theft made in home insurance policies rose by 14% in the first half of 2011, and now represent a ‘significant proportion” of all claims made. Stolen jewellery makes up a third of these theft claims.
But are the recent rises in gold prices, which have on average increased by over 200% in the last five years, and the subsequent ‘cash for gold’ services that have sprung up in response, the main culprits? These two factors have, according to some, made it a much easier and profitable enterprise for thieves to sell stolen gold.
Another factor to consider is the fact that many home insurance policies will come with a single item maximum value limit, meaning that items over a certain value are not covered. Some experts believe that the recent rises in gold prices could have pushed the value of some pieces of jewellery up above theses limits, subsequently leaving many people underinsured.
It is therefore important that anyone who has their jewellery covered as part of their contents insurance should have their jewellery professionally evaluated. Experts also recommend taking photographs of high value items and, if possible, keeping any receipts.
Items that we buy for ourselves are only part of the picture, as many people will inherit valuable items from family and friends over the course of their lifetime. It can be easy to forget about these items and not have them revaluated when there are major price movements in the market place, which can lead to a failure to update home insurance policy and a subsequent danger of not being adequately covered.