A lack of insurance could leave many loved-up Britons under financial strain, a new study indicates.
Research carried out by Abbey Insurance reveals that almost half (42 per cent) of engagement rings across the country do not have a sufficient level of cover, with some 16 per cent of consumers uncertain whether or not they have taken out a policy. It was also claimed that just over a quarter of engagement bands are covered by existing policies. Overall, it was indicated that 75 per cent of people have some form of expensive finery, with the typical household owing 1,785 pounds worth of jewellery - a national total of 44 billion pounds.
However with prices of precious metals rising over recent months, it was suggested that a significant number of consumers could discover that their jewellery is underinsured. Over the course of 2007, it was revealed that the cost of gold had surged by 32 per cent, with platinum also reaching record values.
Should consumers discover that they have to shell out of their own pockets to replace an expensive piece of jewellery, it is possible that their capacity to meet other demands on their spending, such as personal loans and utility bills, comes under strain.
The financial services firm reported that with some 1.8 million people preparing to bend down on one knee and propose marriage this year, a number of consumers should consider getting adequate insurance as soon as possible. It will also revealed that the average Briton reviews their home contents insurance policy just once a year.
Those looking for an effective way to fund purchasing an engagement ring or some other type of expensive jewellery, meanwhile, may find that a low-cost personal loan might be of assistance.
Lloyd Wilson, head of Abbey Insurance, said: "The number of people who don't think about insurance for their engagement rings and other precious items is quite staggering. With the average engagement ring costing around 1,200 pounds, it's important to arrange insurance immediately if you're one of the 1.8 million planning to propose this year. Rising precious metals prices could also result in lack of full cover, so we would recommend that people review their home contents insurance at least every six months to ensure that all their valued items and heirlooms are fully covered."
In addition, research carried out by the financial services firm revealed that consumers living in the Midlands and the north of England are the most likely to have engagement rings which carry an inadequate level of insurance. Meanwhile, a total of 14 per cent of consumers do not have any sort of cover for their jewellery.
Whether looking to purchase an engagement ring or simply to get their partner a luxurious treat, taking out a cheap personal loan could be of assistance to many consumers. The extra financial help that a cheap loan provides may also see borrowers left with enough disposable income to allow them to purchase an adequate insurance policy.
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