Do you have to update the cost of individually insured items on a policy?

Question

Example: diamond ring worth £5,000 when bought would now cost £6,500 to buy due to platinum price and other factors going up. This scenario could work both ways (but very unlikely)......price could go down so would they pay out less on a claim?

Or do the insurance companys take this into account?

Answer 1

Yes, I recommend updating every five years or so.  

Policies will pay out the LESSER of the insured amount, or cost to replace (at a wholesale price).

Answer 2

Some will take this into account others will not, so it's best to keep the valuation's up to date, every 3-6  years or so.

Hope this helps

Answer 3

Keep the original purchase documents or the most recent valuation report.  Be sure you have a policy that covers such high valued items.

DO NOT ASSUME that your insurance policy will cover it. Double check with your insurance company directly.  Also realize that some insurance companies have special limts on jewels and furs in the event of certain types of losses such as theft.  

So double check the Exclusions of your policy and the dollar/pound limits of your policy.