Owners of expensive jewellery in Milton Keynes warned to check their insurance policies as surge in price of gold prompts more burglaries

The Covid pandemic pushed up the price of gold to an all-time high of £1,527 an ounce during the summer and, as a result, gold jewellery is one of the most targeted items in household burglaries.

Prices of other precious metals, including silver, have also risen sharply since the start of this year.

Jonathan Lloyd, of high net worth insurance broker Lycetts, fears homeowners may face significant shortfalls in the event of claims, due to them underestimating their jewellery valuations.

His warning comes after the latest crime figures reveal 7,575 residential burglaries took place in the Thames Valley policing area last year. The average cost of stolen items in each burglary was £2,856.

Mr Lloyd said: “The price of gold has been steadily rising in recent years and its value spiked significantly during the coronavirus pandemic, with an all-time price high being reached in the summer. Homeowners may be blissfully unaware that the value of their jewellery may have increased over recent months – but they could suffer significant financial loss, or even a rejected claim, if these items are stolen."

He added: “In today’s volatile markets, it is more imperative than ever that homeowners ensure they regularly review the value of their jewellery, and inform their insurance provider of any changes.”.

Some people make the mistake of renewing home cover each year without re-calculating the value of their possessions, but this can cost them dear,” The burden of calculating the value of home contents falls squarely with the homeowner and giving an ‘educated guess’ to insurers is the downfall of many.”

Mr Lloyd said that there are a number of ways to be more accurate when accounting for home contents, including jewellery.

“The golden rule is that an item’s value for insurance purposes is how much it would cost to buy new, not what it cost when you bought it...Getting legitimate valuations is the route to being sufficiently insured. Be thorough with regards to your inventory – item by item, room by room – and be diligent about receipt-keeping for high value items.

“Have antiques, family heirlooms and jewellery valued regularly and let your insurer know if these items are stored in a safe or vault. For some items, separate specialist cover may be needed, particularly in the case of very expensive jewellery, collectables, family heirlooms, valuable antiques or fine art."

Home cover places a limit on the maximum you can claim on any single item, so people check that the policy has a sufficient single item claim limits to cover more valuable items.

Mr Loyd said: “Finally, be wary of online valuation tools as they may not be accurate. If in doubt, call a trustworthy provider who will offer personal, expert advice to find you a policy that suits your exact needs.”