Increase in gold specifications on home insurance policies

There has been a marked increase in specified items of gold on home insurance policies in recent years, new research has shown.

Carried out by MoneySupermarket, the study revealed instances of this type have more than doubled in the past 24 months, with a rise of 103 per cent recorded for this period.

However, it was also demonstrated that homeowners may be at risk of being underinsured because of the escalating cost of the precious commodity.

By analysing 3.2 million quotes, the price comparison website found the average insured value of gold listed on these deals has upped by only 5.8 per cent, even though the price of the metal has climbed 43 per cent in the two-year period.

Julie Fisher, head of home insurance at MoneySupermarket, noted: “Our analysis shows that the average insured value of gold items has not risen in line with the market increases and many people could find their precious items are underinsured.”

Ms Fisher explained people therefore need to reassess the worth of their gold, adding individuals must ensure the increased value is taken into account by their insurance arrangements.

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