Q. I crafted a diamond ring over 30 years ago with a comprehensive description and valuation. I believe it has appreciated in value since then. Should I seek a revaluation for insurance? Should I provide the original valuation or start anew? Susan, Crediton

It is crucial to insure jewellery that holds significant value or sentimental attachment, yet many individuals overlook this or mistakenly think their home insurance will suffice.

Firstly, avoid unnecessary expenses. Inquire with your insurer about the coverage amount for your ring and whether a revaluation is recommended. While most insurers suggest a revaluation every few years, it is advisable to verify directly.

If your ring is included under your home and contents policy rather than a dedicated jewellery policy, you might be astonished by the actual amount covered. Often, we assume that these policies are regularly updated, but if you haven’t discussed the ring with your insurer recently, you might find the coverage amount has remained stagnant.

For high-value rings, consider obtaining a specialized policy from an insurer that focuses exclusively on jewellery. There are numerous options available, so comparing rates can yield more favorable prices.

Assess the limitations of your current insurance policy. For instance, is the ring insured for incidents occurring outside your home? What if it is lost, rather than damaged or stolen?

Home insurance policies typically have a maximum payout limit for valuables, so if you own multiple high-value items acquired over the years, you may discover you are underinsured in the event of a major claim, such as fire damage.

Fortunately, having your original valuation certificate should simplify the re-evaluation process. However, if your ring is of significant value, insurers may require you to get it assessed by a specialist rather than a general jewellery store. Depending on the original valuation source, it may be advisable to start the valuation process from scratch, though having the original value as a reference will help.

Numerous specialists offer valuation services, but ensure your chosen expert is approved by your insurer if they differ from the one recommended.

It is important to note that trends change and market values fluctuate. While your ring may have increased in value, it could also have declined or risen less than expected. Sentimental value is typically not factored into insurance appraisals.

Insurance policies generally cover the cost of replacing an item. However, if a similar style is no longer available, the replacement value might be based on the worth of the materials used, or alternatively, a cash settlement might be offered.

Insurers frequently require engagement with jewellery from their panel of specialists and may provide vouchers for payment. You can ask for cash, though this may lead to a lower compensation amount to mitigate the financial risk for the insurer.

One important note for anyone considering ring revaluations: disputes often arise regarding repairs when one partner replaces precious stones with less valuable alternatives without informing the other. This scenario is more prevalent than one might think.