18 September 2025
For many clients including High and Ultra High Net worth, insurance is seen as a safety net; a policy that will simply respond when something goes wrong.
But that assumption can be dangerous. Jewellery, watches, and other high-value possessions require a more detailed approach.
In recent months, we’ve seen a rise in claims where the sticking point wasn’t the loss itself, but the fact that sums insured didn’t reflect today’s market reality, or items weren’t specified individually.
Values are rising fast
The luxury watches and jewellery markets are moving at unprecedented speed. Global demand, limited production and rising costs of precious metals mean prices can change dramatically in a short space of time.
A watch bought for £10,000 may now fetch £20,000 or more at auction. A family heirloom ring could double in value over a few years. Yet policies often rely on standard index-linked adjustments which rarely keep pace with the luxury market.
Why sums insured matter so much
For clients, failing to keep sums insured accurate creates three major problems:
1. Underinsurance: If the true value of an item is £20,000 but it’s insured for £10,000, insurers can reduce any claim proportionately.
2. Single Article Limits (SALs): Most policies cap payments for unspecified high-value items. If your SAL is £5,000 and you have a £15,000 watch not listed separately, the maximum payout would be £5,000.
3. Policy voidance: In extreme cases, if underinsurance is around 50% or more, insurers may argue it was intentional and attempt to void cover altogether on the basis of misrepresenting the overall risk to them.
Security still matters
While sums insured are the most pressing issue, insurers also expect clients to comply with security requirements. Common conditions include:
- Keeping items in a safe when not being worn or used.
- Locking the property and setting the alarm when leaving home.
Failure to meet these requirements can give insurers grounds to decline a claim, even where sums insured are correct in matters of theft/loss.
How clients can protect themselves
- Safeguarding high-value possessions isn’t complicated, but it does require a proactive approach:
- Commission regular valuations - every 2–3 years, or sooner if items are added or markets shift.
- Maintain a clear inventory - including photos, certificates, receipts and a running log of items.
- Specify high-value items individually - each significant piece should have its own sum insured.
- Review cover at every renewal - don’t rely solely on standard index-linking alone.
- Comply with security requirements - insurers expect safes, alarms and locked properties when items aren’t in use.
Our responsibilities
As brokers, at Verlingue we must ensure clients understand the importance of accurate sums insured by:
- Discussing valuations, inventories, and sums insured in detail.
- Encouraging regular appraisals and cover updates.
- Providing insurers with accurate information to avoid disputes at claim stage.
- Reducing professional indemnity risk by clearly documenting our advice.
This proactive approach ensures clients are properly protected and claims run smoothly.
Final thoughts
Peace of mind comes not just from owning insurance, but from knowing it will respond as expected. For high-value items, that means keeping valuations up to date, itemising correctly, and meeting security conditions. These simple steps make all the difference.
At Verlingue, we handle these details so you feel fully supported. Please reach out if you’d like further guidance.
