High value items such as jewellery, fine art and collections are often among the most treasured possessions within a home. However, one of the most common risks for high net worth clients is that these items are not accurately valued for insurance purposes.

Unlike many other household items, the value of jewellery and fine art can change significantly over time. Market conditions, material costs and demand can all influence value, sometimes quite rapidly. For example, fluctuations in the price of gold and precious metals, as well as changes in the art market, can lead to notable shifts in value over relatively short periods.

Without regular valuations, there is a risk that items may be underinsured. This means that in the event of a claim, the settlement may not reflect the true cost of replacing or restoring the item. For high-value assets, even small discrepancies in valuation can lead to significant financial shortfalls.

Jewellery in particular is subject to changing values. Gold prices have reached record highs in recent years, while demand for luxury watches and gemstones has also increased. At the same time, theft of high-value jewellery remains a concern, with reports indicating a rise in organised theft and targeted burglaries involving valuable items.

Fine art and antiques can also fluctuate depending on market trends, rarity and collector demand. The global art market has experienced both growth and volatility, meaning that valuations can change depending on economic conditions and shifts in buyer interest.

Another key consideration is documentation. A professional valuation provides a detailed record of each item, including descriptions, materials and estimated replacement values. This information is essential when arranging insurance and can also help streamline the claims process if a loss occurs.

Industry guidance typically recommends that high-value items are reviewed periodically to ensure they reflect current market conditions. This is particularly important where items have been owned for several years or where market values have increased significantly.

For high net worth clients, where collections may include multiple valuable items, taking a proactive approach to valuations is essential. Regular reviews help ensure that insurance cover remains appropriate and aligned with the true value of assets.

Working with a broker can support this process. Rather than relying on static valuations or automatic renewals, a broker can help ensure policies reflect current values and provide guidance on maintaining appropriate levels of cover.

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Sources:

UK jewellery market growth and demand trends (Euromonitor summary)
Allianz UK claims data on jewellery theft and rising values
Aviva / Independent reporting on increase in high-value jewellery theft
Financial Times – importance of professional valuations and art/jewellery expertise
The Times – £10m+ jewellery theft case