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27 June 2018

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Are you paying more than you need to insure your jewellery?

Are you paying too much to cover your jewellery?

Most people that insure their jewellery do so on a worldwide all-risks basis. As such there is a high possibility they may be paying more in premium than necessary to ensure they are adequately covered.

Consider this: If you have a home safe. It is highly unlikely that you will want to wear all your jewellery, at exactly the same time. So why should you pay for your insurance on this basis?

Insurers apply lower premium rates to jewellery that is kept in a safe compared to jewellery that is being worn.

This normally requires you to nominate specific items of jewellery to be kept in a safe at all times. There is then the added complication of having to let your insurer know when these items are being worn. Centor offer policies that can provide what is known as a ‘floating limit’ for jewellery and valuables.


The ‘floating limit’

Floating limits allow you to nominate a sum insured for the most jewellery items worn at any one time. These items would be insured on a worldwide all-risk basis. The remaining balance of your jewellery is then insured on an in-safe basis. (Subject to having an adequate safe at the insured property)

This approach will give you flexibility to wear whatever jewellery you wish (within the floating limit), knowing you are fully covered. Insurers are then reassured that the balance of your jewellery will always be securely stored and with this in mind, the insurer can offer a discount to the premium accordingly.


A simple example

If someone has £12,000 in watches with the most expensive one valued at £7,000. By purchasing £7,000 on a worldwide basis and £5,000 on an in-safe basis will see the overall rate reduced.

The insurer will no longer need to know which watch is out of the safe. Only that the value of the more expensive watch is covered and that the other watch is in a safe. By applying this simple principle across your jewellery collection, the savings will quickly mount up.


Graham Morgan-Tolworthy, Centor’s Private Clients’ Manager, comments:

“Our ‘floating limit’ for jewellery is an excellent way of lowering your premium without really affecting either your cover or your lifestyle.”

For more information, get in touch with:
Graham Morgan-Tolworthy, Private Clients Manager
0207 330 8725