By Helen Dunne

Coming home to find one’s home ransacked and burgled is distressing enough, but then to discover that your collection of jewellery is not fully covered by the household insurance policy is heartbreaking. But, according to Lois Hinchcliffe, sales and development manager of specialist brokers Belgravia, that is the reality of many standard household insurance policies.

“A standard household policy probably covers a collection worth up to £10,000 at most,” she explains. “People settle for that because they wrongly believe that is all that is available.”

Indeed, before one Chester-based lady learned the truth, she regularly carried almost £50,000 worth of jewellery in her handbag rather than leave it at home. “Her logic was that she would rather be mugged and lose her jewellery rather than lose it through a burglary,” explains Hinchcliffe. “Her standard policy didn’t cover the full value of her jewellery collection and she thought that this must be the way it is.”

Hinchcliffe taught the now fully insured lady the error of her ways. She took out an appropriate insurance policy, and installed a small safe in her home to store the jewellery when she is not wearing it. The companies that Chester-based Belgravia has relationships with specialise in insurance for high-net worth individuals. However, it is no longer possible to take out policies specifically for valuable jewellery collections. These specialist insurance companies are now keen to cover all areas of one’s life, from the car to the jewellery collection to the building and contents on one policy.

"One lady regularly carried almost £50,000 worth of jewellery in her handbag rather than leave it at home."

There may be a premium for the service, but Hinchcliffe believes the additional cost pays for itself. “I used to deal with standardised household insurance policies, and once I had a client who had been married for 30 years and lost his wedding ring. The insurance company had photographs but they also wanted the receipt.

“With standard policies, you must prove the existence of items after the event. There is a huge element of ticking the boxes with these companies.”

The companies Hinchcliffe deals with do not require photographs or receipts, but she recommends that clients get regular, professional valuations. “If you inherit an item, say, from your grandmother and the last valuation is five years old and claims it is worth £30,000, then if it is stolen you will get a cheque for £30,000. But it might actually now be worth £50,000. You will have lost out,” she explains.

Such advice recently benefited one client, who was taking out an insurance policy. “She had a diamond bracelet which she had had valued some years back at £5,200. I recommended she get an up-to-date valuation,” says Hinchcliffe

“This revealed the bracelet was now worth £6,700. Sadly, she lost it four or five months later but if she hadn’t got that valuation, she would have also lost out on another £1,500 which was needed to buy a replacement.”

With new clients, Hinchcliffe will visit their homes to assess the items that require insurance and recommend the appropriate policies and level of cover. She may also advise on security systems or, in some cases, kidnapping protection.

If a client keeps the bulk of her jewellery collection in a bank vault, then she will not require complete insurance but may need a floating policy that insures the items in use at any time.

Hinchcliffe believes there are many advantages to specialist policies for high net worth individuals, among them the speed and quality of service dealing with claims. “They aren’t going to start arguing about wear and tear,” she adds.

The contracts also include small print that Hinchcliffe admits she is rather ‘nerdy’ about reading. This certainly helped clients of hers recently who had an unfortunate experience while getting married abroad. “He had surprised his bride by buying her a diamond necklace when they were on honeymoon. It cost £10,000 and she was delighted, but sadly lost it before their return,” recalls Hinchcliffe.

The generous husband had also forgotten to ring Hinchcliffe from the honeymoon to put the item on the insurance policy. “I put in a call to find out how their wedding had gone, and heard the story,” she says. “I told them there might be something I could do.”

There was. Their policy included a new acquisition clause, which allowed them 60 days to notify their insurance company of purchases but also did not preclude claiming if the item was stolen or lost in the interim. “I told him to send me the receipt, and shortly afterwards they received a cheque for £10,000. They were able to buy something very similar as a replacement,” says Hinchcliffe.

To contact Lois Hinchcliffe at Belgravia call on 01244 353173 or 07971 324976