Jewellery Insurance & Valuing

An APS guide to protecting your jewellery and precious stones


Along with your home and car, jewellery will probably be one of the most financially significant purchases of your life, so it is worth taking the time to make sure your new asset is properly protected.

A common mistake APS clients, and indeed many jewellery owners make, is assuming their fine jewellery will be covered by their home or renters insurance, but the unfortunate reality is high-value items, such as engagement rings or diamond jewellery, will far exceed the maximum payout standard contents insurance offers.

Typically there are three main types of fine jewellery insurance, but choosing which one works best for you can be difficult if you do not have experience investing in precious stones, hence we at APS have made the below recommendations to best protect your jewels.

Replacement Value -

This is the most popular option for insuring diamonds and engagement rings, however is not generally the best, especially if you are lucky enough to own a bespoke item. Replacement cover allows your insurer to buy a “new” version of your lost jewellery, which is meant to be a reasonably close match to the original. However what the insurer deems a “similar” piece of jewellery to your original can differ substantially from your opinion. Also, insurers may be inclined to replace your ring with one considerably less valuable than the one you owned originally in order to cut costs. For this reason APS would only recommend this form of insurance for branded, mass produced items, so a carbon copy of the original can be easily found should yours be lost or stolen.

Cash Value -

Cash value insurance is based solely upon the estimated market value of the item at the time the claim was made, meaning the price at purchase is irrelevant to the cover offered. This works well for antique items, as a replacement is unlikely to be available, a payout to its current market value is usually preferable.

Agreed Value - *APS recommends*

This form of insurance is preferred for APS, as it ensures our clients are covered for the actual value of the ring. Agreed value insurance is not based on the cost of the jewellery, but on professional forms of valuation, including any GIA certification or the external valuation your jeweller may have undertaken. This form of cover means your insurer will pay the full sum outlined in your policy, even if they can replace the ring for less.