The home insurance policy provides the opportunity for policyholders to protect their jewellery against a wide range of loss or damage that includes accidental and unforeseen loss or damage, for many policyholders where they have items of jewellery in excess of a certain value in respect of individual pieces there may well be a settings clause applied to the policy. It is very important that the settings clause is understood and complied with by the policyholder but what is a settings clause.
What is the settings clause under a household insurance policy?
The wording of the actual clause varies from insurer to insurer, but the intention of each insurance company in this regard is the same. For more valuable pieces of jewellery the stone settings and clasps etc. must be checked on a regular and specified basis by a jeweller and any remedial work that might be required has to be undertaken. This is to help reduce the risk of an accidental loss to the stones or jewellery itself arising from “wear and tear” to the piece, stones tend to work free from their settings over a period of time.
What is the wording of the settings clause?
Although the wording does vary from insurer to insurer, this is a typical example of a settings clause but as always you should check the individual requirements under your own policy.
We will not pay for loss or damage to stones or repairs to settings of any items of jewellery which have a value in excess of £4,000 unless the jewellery has been examined at least once every two years by a competent jeweller. Written confirmation of examination will be required in the event of a claim.
What happens if I breach a settings clause on my household insurance policy?
If you do not undertake the required review under the clause you may well find that any claims arising from loss or damage to the jewellery is not covered by your insurance company providing that the breach of the policy clause may have contributed to the loss or damage. Similarly, if you are not able to demonstrate that the clause has been complied with you may also not be covered against loss or damage so make sure that you keep records of the checks you have undertaken.