Floating Limits: flexible cover for jewellery and watches

For many clients, whether they own an established jewellery collection or are beginning to invest in key pieces, protecting those items is essential. Yet jewellery and watches are often insured in a way that costs more than necessary. A floating limit offers a smarter, more efficient approach - reducing premiums without compromising protection. Here, Steve Moores, Client Director, explains how floating limits work, when they’re suitable, and the potential savings they can offer.

What a floating limit means

Jewellery and watches are the most expensive thing to insure on a pound for pound basis. One way to manage this, and to reduce your overall home insurance premium, is to opt for a floating limit on your jewellery and watch collection.

We often speak to new or prospective clients who have all of their jewellery insured on a worldwide basis, all of the time. This is often unnecessary and usually results in a higher premium.

Unlike a standard policy, where each item is insured either in the safe or out of it, a floating limit gives you the flexibility to wear what you want, when you want, up to an agreed value. There’s no need to let your broker or insurer know, provided you stay within your chosen limit.

Why floating limits help keep premiums down

A floating limit works on the basis that you won’t wear all of your jewellery at the same time, and that anything not being worn is kept in a suitable home safe.

You don’t need to specify which individual items are in and of the safe. Instead, you choose the maximum total value you might have out of the safe at any one time - usually the value of what the family would wear on a special occasion. Because the items can change, as long as the total stays within the agreed limit, it’s known as a “float” or “floating limit”.

A real-world example

Let’s assume you have £200,000 of jewellery. You wear £25,000 every day, and on a special occasion you might take two watches and a necklace out of the safe, bringing the total worn at the same to £40,000.

In this case you would set a floating limit of £40,000. We’d recommend choosing £50,000 to give you some flexibility. This means you must keep at least £150,000 of jewellery in the safe at all times.

If all of the jewellery you had out of your safe were stolen, the most the insurer would pay is the floating limit – in this example, £50,0000.

When a floating limit may not be the best option

A floating limit isn’t suitable for everyone, and your broker will advise. In general, it may not be appropriate if:

• You don’t have a suitable, professionally installed safe. For example, with £200,000 of jewellery and a £50,000 float, your safe must be rated for at least £150,000 of jewellery (a cash rating of £15,000). For guidance please see how article: What are the different grades of safe
• You have one high-value item that is always worn, such as an engagement ring.
• Your jewellery collection totals less than £20,000, as a floating limit is unlikely to offer a premium saving.
• You wear more than half your jewellery, even if only occasionally – in this case, a floating limit may not reduce your insurance premium.

When a floating limit works well

• Large watch collections, as only one watch can be worn at a time

Do I need a valuation first?

• If you haven’t had a valuation in the last three years, we would recommend you first obtain an up-to-date valuation before choosing a floating limit. Ensuring your jewellery insurance shines when you need it most.

What are the benefits of a floating limit?

A floating limit can help reduce your home insurance premium. Insurers apply a lower rate to jewellery kept in a safe than they do to the amount you wear, so shifting more value into the in-safe category lowers the overall cost – without significantly affecting your lifestyle of cover.

In the example above, the difference between insuring all jewellery on a worldwide basis versus using a safe with a floating limit could be as much as £1,000 a year.

Can I combine a floating limit with items in a safe or bank?

Yes. You can choose to keep certain items permanently in a safe or the bank – you would simply need to specify which pieces these are.

Is my safe up to standard?

Your home safe must be approved by an insurer and of a sufficient rating to protect the jewellery you keep in it. We can advise on the rating your safe should have and put you in touch with one of our recommended safe suppliers.

Getting the right advice

The above is only a guide. Cover and rates vary between insurers, and high floating limits won’t be suitable for everyone. That’s why it’s important to speak to a specialist. At Howden Private Client, our advisers are experienced and professionally qualified. We take the time to understand your needs, review your policy, and ensure your limits are clearly understood and correctly set. And if the worst happens and you need to make a claim, our dedicated claims team will support you throughout the process with care, expertise and discretion.

If you’d like advice on whether a floating limit is right for you, call us on 0208 256 4901 or email privateclients@howdeninsurance.co.uk

Steve Moores

Steve brings an expertise to private client insurance. His hands‑on work with clients gives him a clear understanding of how cover works in practice - and how to ensure it genuinely protects what matters most.

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