Gold prices are moving faster than expected
Gold has risen sharply over the past year and continues to show strong upward momentum. Analysts expect values to remain high through 2026, with limited signs that the pace is slowing.
Underinsurance risk is increasing
As a result, declared values can become outdated quickly when the underlying metal price rises. A piece valued last year may now be worth significantly more, creating a potential insurance shortfall (underinsurance) if a claim occurs.
Bullion requires more frequent valuations
Investment‑grade gold is driven almost entirely by market price. When that price fluctuates substantially, annual valuations may not be sufficient, and higher sums insured may trigger stricter storage requirements.
Jewellery and collectibles – metal value is not the whole picture
Both the intrinsic metal value and the artistic or collectable qualities of a piece need to be assessed together. When gold prices move quickly, the metal component can become outdated in valuations, leading to an inaccurate overall figure if updates are not carried out regularly.
Policy limits may no longer be suitable
Rising values can push individual items above single‑article limits (SALs) or take a collection beyond the total jewellery cap sooner than expected. When this occurs, parts of the collection may no longer be fully insured, leaving gaps in cover until the policy is reviewed and updated.
Recommended actions for high-net-worth individuals
- Arrange an up‑to‑date valuation. This applies to jewellery, bullion, watches with significant gold content, and coin collections. Valuations should reflect both metal value and any additional artistic or collectable worth.
- Note that most valuations remain valid for three to five years, but rapid changes in gold prices may require more frequent updates.
- Review policy limits and conditions. Check single‑item limits, total jewellery cover, and safe‑storage requirements. Adjustments may be needed to maintain full protection.
- Consider agreed value cover. This provides certainty by ensuring a pre‑agreed settlement amount in the event of a loss. Agreed value cover is usually most appropriate for items that sit above the single‑article limit, as unspecified cover often provides room to settle at the current retail replacement level.
- Keep documentation current. Insurers increasingly expect recent valuations, proof of ownership, photographs, and details of secure storage. Agreed value cover will normally require recent proof of value or a formal valuation.
Now is a good time to review your cover
Contact us to check your policy and arrange an up-to-date valuation with our trusted specialist. Call 01494 733337 or visit our Private Client Insurance page to learn more.
