It comes as a surprise to many that homeowner's or renter's insurance policies probably do not offer full coverage for your engagement ring and other fine jewellery. It is possible that your insurance policy covers jewellery theft, but not loss that occurs for other reasons such as the precious stone falling out and being lost.

Furthermore, it is a real possibility that the insured amount is capped to an amount that does not reflect the jewellery’s value. Many pieces of jewellery have considerable sentimental value, are heirlooms or were presents given by loved ones. The cost of replacing will take an emotional as well as a financial toll if you are not insured adequately.

There are a few things that you can do to ensure you never find yourself in the position of not being able to replace/ repair your valuables.

The most obvious, and the topic of this newsletter, is to have the correct insurance. To do so, there are a number of things that need to be taken into consideration to ensure adequate protection.

It also needs to be noted that Jewellery insurance generally does not cover any new jewellery that is not listed in your policy. At Aurea, we suggest that as soon as you buy or receive a new piece, look to get it insured immediately.

The first thing that you will be asked by the insurer is the value of the item you wish to insure. To do so, you will be required to provide an up to date valuation from a reputable, independent and recognized gemmologist such as the Independent Gemmological Laboratory (IGL), http://www.igl.net.au

Check with your insurance company if there are any restrictions related to valuations as your insurer may only accept valuations that are no older than 1-2 years.

Also ask your insurance company on what else is required to insure your items, such as a receipt or close up photo etc.

By providing these, it is usually a straight forward process to gain cover for loss, theft, damage for in and out of home.

Regardless of whether or not it is required by the insurance company, it is wise to have photos taken of your items and stored in a safe place. This gives organisations such as Aurea great help in replacing the item in case of theft or loss with an identical piece.

Just as other types of insurance, shop around for a policy that best suits your needs and budget.

As with all insurances, carefully read over your policy and fine print to be sure it provides the cover you expect.

A valuation is important as it will let you know a ring or other piece of jewellery's true worth, this is particularly important when purchasing antique and vintage items. The valuation is also of great value to both you and the prospective buyer if you were to sell the piece in the future and thus verify its worth to potential buyers.

At Aurea Designs, most engagement rings sold come with an independent valuation offering you peace of mind that your ring is exactly what you purchased and assist you for all your insurance needs.