How To Avoid The Most Common insurance Loopholes

Insurance loopholes

Many jewellery and watch insurance claim declines could be avoided, usually by understanding the small print in your policy. Knowing what the common loopholes are will help you to identify whether you’re currently open to risk, or whether all y our ducks are in a neat row and you can rest easy.

Your Duty

Your policy will almost certainly mention somewhere that you have responsibilities as the policy holder. It may be that you are expected to store your jewellery and watches carefully or securely. It may be that you are expected to take “reasonable care” with your precious items or prove ownership with a formal valuation document. These are of course very grey areas - what one person might consider reasonable care, another might deem negligent. Make sure you know what your policy states and if in doubt, contact your insurer and ask for clarification.

Condition Reports

Some policies specify that items MUST be checked by a jeweller every 12 or 24 months. The jeweller must provide a condition report, signed and dated to confirm that the settings are secure and there are no concerns about wear and tear. Check you have not missed any clauses like this in your policy.

Wear and Tear

Many standard household contents policies do not cover wear and tear and so, if you lose a diamond or gemstone because of the wear on your claws or settings, you would not be covered.


Many policies stipulate where your jewellery and watches should be stored. If your policy does state that your items need to be in a home safe then ensure you are keeping them in your safe. If you have a burglary and your items are not secured as per your policy, you simply won’t be covered.

  1. Your Duty