Why It’s Important to Protect your Gifts with the Right Insurance this Valentine’s Day

Cupid’s arrow will be striking again this Valentine’s Day, on the 14^th of February, but the big day of romance does not come without risk regarding the buying of high-value jewellery and romantic gifts for that special person in your life. Valentine’s Day shopping can certainly get the heart racing, but High Net Worth individuals must put romance aside when it comes to the serious business of insuring their luxury purchases.

When a bouquet of flowers is not enough…

Top of the list for Valentine’s gifts is jewellery, of course – pre-Valentine’s jewellery sales jumped 31% in 2022 compared to 2019, according to a survey from SpendingPulse – but other sentimental purchases may include high-end watches or even pieces of art. Such high-value gifts need protecting, and this is where High Net Worth insurance steps in with ‘head over heart’ pragmatism.

…High Net Worth insurance is devoted to your luxury items

High Net Worth insurance cover protects expensive gifts against theft, loss or damage. It also provides vital cover for high-value homes, fine art collections and top of the range cars. This is important, as even a modest new piece of jewellery may not fall under your general Home Contents insurance cover. Generally speaking, designer clothes, handbags and shoes are covered under ‘general contents’, but artwork, jewellery and collectibles – or any items over (usually) £1000 each – must come under their own dedicated categories, with independent valuations. These categories affect your entire policy, so must be carefully assessed as part of a specialised High Net Worth policy. It’s worth bearing in mind that commodities like gold, diamonds and platinum have all dramatically increased in value in recent years. Watches, too, including vintage or antique ones, have also seen their values rise. Additionally, Home Contents insurance in the UK will protect jewellery against accidental damage, loss or theft, but only at a very basic level, with insurance against loss or theft away from the home often excluded entirely. A standard policy will not be a match made in heaven, unfortunately, but a High Net Worth policy will fully safeguard all your luxury items, inside and outside the home.

So, protect what you love

It’s recommended that High Net Worth clients compile a checklist of their contents and luxury items every 2-3 years to make sure they are adequately covered for any eventuality. Some policies will allow for unlimited contents cover, meaning new purchases and acquisitions are not an issue. Some allow items to be covered in full for a set number of days after being purchased, before the insurer needs to be notified. The key is, if you make any new major purchases, let your broker or insurer know, because if a valuable gift is important to you or the ones you love, it’s important to fully protect it. Happy Valentine’s Day!

Read more blogs from Ascend:

Underinsurance risk to high net worth individuals

Reasons you need valuation for collectables

Any questions? Please don’t hesitate to contact one of our team.

amy.english@ascendbroking.co.uk |  Telephone: 01245 449 060