Burglaries and personal theft claims soar to £415m Paul Richardson, home insurance specialist at NFU Mutual, said: "If the contents of some jewellery boxes needed to be replaced, owners may be devastated to find their current insurance policy would only pay out a fraction of the cost of replacements. Sentimental items such as engagement rings and heirlooms are typically underinsured as many current owners have never had them valued. The ABI's data shows that the cost of meeting burglary claims is rising sharply, up across the industry by 10pc. Last year, insurers received claims from 276,000 domestic burglaries, after figures had fallen annually since 2007. Personal thefts, away from the house, are also mounting with the average theft claim up by 9pc, to £1,504. The growth in personal electronic equipment, especially iPads and laptops, is partly being blamed for the upswing in crime, along with the recession. But it is the rise in the gold price which is causing insurers and householders the biggest headache. Before the credit crunch gold was trading at around £200 an ounce. It peaked last September at £1,200 and is still hovering above £1,000. John Ball, of Brown & Newarth, which specialises in bridal jewellery, said: "Gold and diamond prices have risen sixfold over the last six years. If you got married a few years ago, you might have paid £200 to £400 for a wedding ring, which will cost £700 to £800 to replace today. Similarly, diamonds have taken off over the last year, rising by around 60pc. A modest engagement ring will now cost £1,500 to replace. Security can be a particular problem for British Asian families, who traditionally pledge a substantial gold dowry on the marriage of their daughter. Asia Yasir of Esure said: "It is still the tradition with British Asian families that, when a daughter marries, her father hands over about £25,000 worth of gold jewellery, sometimes much more. It is an investment for their future, an insurance policy which can be cashed in should anything go wrong. Getting adequate insurance is vital, not least because the value of a dowry will have risen considerably over the last few years. Martin Scott, head of Churchill Home Insurance, agreed: "The dramatic increase in the value of gold is also putting consumers at risk and we estimate that four out of 10 householders are underinsured on their jewellery items. We urge home owners to check the current value of their jewellery, and to update their home contents insurance cover accordingly. Getting the right cover Most standard contents policies will insure all your belongings up to a total value of around perhaps £30,000, £50,000 or £75,000. It is important to know the upper limit of your protection, and assess whether this is adequate. If your overall limit is inadequate, any claim you make, even for a single item, will be reduced on a pro-rata basis, or could be rejected completely. Not all contracts will necessarily include items of higher value, such as jewellery, nor will they automatically include cover while out of the house. It is important to check the small print, so you can buy additional personal belongings protection both in and away from the property. Where cover offered by your insurer's basic or standard policy looks inadequate, you can normally upgrade to a "gold" or "luxury" option. Aviva, for example, will add on worldwide personal belongings protection for an extra £27. Even so, one in 20 insurance policies will limit personal belongings protection of less than £8,000, while a further 12pc offer total protection of between £8,000 and £15,000. This may sound generous, until you add up the cost of all the jewellery, electronics, cameras, art and antiques you own, according to insurance analysts at Defaqto. So you must read the small print carefully to make sure you have adequate cover. Also look at the maximum you can claim for a single item. One in three policies has a maximum limit on a single item of £1,500. To be on the safe side, it makes sense to draw all precious items to your insurer's attention, to guarantee you buy sufficient cover. Where you have substantial jewellery, works of art, silverware or furs then standard cover is unlikely to meet your needs, in which case you should explore a special high-value policy available from companies, such as Hiscox, Chubb or Zurich, or via a specialist broker. Julie Carter, household manager at specialist broker Adrian Flux, said: "These policies are more expensive, with annual premiums of perhaps £1,000 to £2,000, but they automatically include higher limits. If you have a lot of precious items these will give you complete peace of mind. Whichever policy you opt for, remember to check the excess. This is the amount the insurer deducts from any claim. According to Defaqto, 34pc of insurers levy an excess of £100 or more, although this can be lowered if you pay a slightly higher premium. If you do have to make a claim, be aware that you are likely to lose your no-claims discount. Your renewal premium will be higher, and moving elsewhere immediately after claiming may prove problematic. It is possible to insure personal gadgets via a stand-alone contract for less than £6 monthly with packages offered by the likes of protectyourbubble.com. Jewellery too can be covered by specialist contracts. This will be a more expensive option than these items adding to your household insurance, but would avoid a price household premium hike after a theft. How to avoid a claim Theft of jewellery is not just a financial blow, but an upsetting emotional trauma. The sentimental value of family heirlooms and other tokens of love can often outweigh the financial grievance. Good security can help prevent distress. For substantial amounts of gold, jewellery or other items of value, you need a safe, either bolted to a solid wall or buried underground. And sales of safes are booming, according to Stephen Wyld, director of Esafe. He said: "For the past few years now we have seen a steady growth in the demand for home safes." If you feel you don't need a safe, you can still outwit intruders by always hiding your jewellery. Never keep precious items in the master bedroom in a jewellery box, which is the first place burglars head for. Hide your valuables where they are unlikely to look, although it might pay to leave cheaper pieces in a jewellery box, so they have something to take. You can buy decoy "safes," such as Heinz beans can jewellery containers, which can be kept in the larder among other tins. Similarly, hollowed-out books, electric plug sockets, hollow candles or even tins of antifreeze can sit innocently on your shelves, while housing your precious rings and earrings. To help with any claims should disaster strike, photograph your jewellery, and keep authenticity documentation separately, such as original purchase receipt, valuation, certificate of authenticity or an original box or guarantees.