Should families consider gold insurance for high-value jewellery holdings?

As gold prices continue to rise and jewellery increasingly forms a major share of household wealth, experts are urging families to look beyond lockers and consider gold or jewellery insurance as an additional layer of protection. Investment banker and CA Sarthak Ahuja recently said Indians should consider “Gold Insurance” to protect jewellery against theft, burglary, fire and accidental loss—an idea gaining attention as the value of household gold holdings reaches unprecedented levels.

The scale of gold ownership in India itself highlights why the discussion is becoming relevant. Indian households collectively hold approximately 25,000–30,000 tonnes of gold, largely in the form of jewellery and coins. Spread across nearly 24 crore households, this translates to around 100–150 grams per household, currently valued at roughly ₹15–20 lakh per family.

The numbers become even more significant when viewed as part of household wealth. A Kotak Institutional Equities report dated March 18 estimated that the value of Indian household gold is approaching $5 trillion, accounting for nearly 65% of non-property household wealth stock.

MUST READ: Will higher gold prices and import duty increase illegal gold trade in India?

For many families, jewellery accumulated through weddings, inheritance and long-term savings has evolved into a large financial asset. Experts say this raises an important question: while families protect homes, vehicles and health through insurance, should gold holdings receive similar treatment?

What exactly is jewellery insurance?

Jewellery insurance is either a standalone insurance policy or a jewellery add-on under home insurance, designed specifically to protect precious items against risks including theft, loss and damage.

Unlike standard home insurance, jewellery insurance focuses on valuables and may provide broader protection. Home insurance plans can carry liability caps and exclusions, especially around theft claims and natural disasters.

MUST READ: Over Rs 22 lakh import duty on 1 kg of gold! Capitalmind's Deepak Shenoy on the flip side of duty hike 

Home insurance with jewellery cover

One of the most accessible options available to consumers is purchasing a home insurance policy with a jewellery add-on. Under this arrangement, policyholders buy standard home insurance that protects against burglary, theft and fire-related damages and then add a separate rider for jewellery protection.

According to Ahuja, this option can be relatively affordable.“For every ₹10 lakh of jewellery, you pay ₹1,000 to ₹5,000 annually,” he explained, which translates to approximately 0.1%–0.5% of the jewellery value per year.

However, these policies usually come with limits. Insurance companies often cap jewellery cover at around 20% of total home policy coverage. That means a ₹50 lakh home insurance plan may provide only around ₹10 lakh protection for jewellery.

As a result, homeowners with substantial gold holdings may need larger overall policies or additional cover.

Standalone plans

Another route is a dedicated All Risk policy or standalone jewellery insurance plan.

Premiums typically range between ₹5,000 and ₹10,000 annually for every ₹10 lakh of cover, or around 0.5–1% of jewellery value.

These policies generally provide wider protection beyond the home. Coverage may extend to incidents such as theft while jewellery is being worn, chain snatching and losses occurring outside residences.

Why jewellery insurance is gaining attention

Experts highlight several benefits:

Jewellery insurance offers multiple benefits beyond basic theft protection. It provides comprehensive financial cover against risks such as theft, burglary, accidental loss, fire and damage to valuables. The policy can be especially useful for families that store jewellery at home instead of relying entirely on bank lockers. 

Another advantage is flexibility, allowing policyholders to choose an insured amount based on the value of their jewellery holdings. Many plans also provide protection against losses arising from natural calamities such as floods or earthquakes. Depending on the policy terms, coverage may extend beyond the home and include situations involving travel, jewellery shops or exhibitions, offering broader protection across different scenarios.

MUST READ: BT Explainer: Why the Current Account Deficit is under pressure

General insurers including HDFC ERGO, Bajaj Allianz, National Insurance and New India Assurance offer such products.

With household gold wealth nearing $5 trillion, experts say jewellery insurance is gradually shifting from a niche product to a practical risk-management tool for Indian families.