The Fixer: diamond insurance dilemma

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Dear Fixer,
When my grandmother died recently, I inherited a valuable diamond necklace.

It is worth about £7,000, and is also of great sentimental value as it was a gift she received from my grandfather and is something I remember her wearing a lot.

My husband has suggested that I get the necklace insured on our home insurance.

However, I am not sure this will be sufficient, or even whether our insurance provider will agree to insure such a valuable item.

Can you tell me the best way to insure valuable pieces of jewellery?

M Hargreaves, Exeter

Dear Mrs Hargreaves,
When it comes to insuring jewellery, you have two main options: adding it to your home contents policy and taking out standalone jewellery insurance.

Many people choose the first option because it is the most convenient. However, it is not always the most effective.

A lot of insurers, for example, exclude claims for jewellery that is lost or stolen outside the home – unless you take out personal possessions cover that includes valuable items such as your necklace.

Due to the high value of the necklace, you will probably also need to specify it on the policy, which may push your premiums up further still.

That's unless your home contents cover is with a high-end insurer such as Hiscox, which provides up to £15,000 cover for jewellery theft, at home and away, and for accidental loss or damage as standard (although you still need to inform the company that you have inherited the item).

Whichever home insurer you are with, however, you will have to pay an excess towards any claim - something that is not the case with a standalone jewellery policy.

Jewellery insurance specialist TH March, for example, charges no excess and offers cover for both single items and collections anywhere in the world. Its single-item policies start at £53 a year.

The Fixer

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