Home contents insurance claim, uk insurance?

The purpose of any insurance policy is to put you back in the position you were in before the loss - in your case, that position was owning a piece of jewellery, so you are entitled under the policy to a similar piece of jewellery, nothing else. The insurer is under no obligation to give you a cash settlement although some insurers will consider it if you are willing to take a lower settlement amount. It is always worth asking but they do have the right to refuse. If you are unhappy with the choice of jeweller the voucher is for you can ask them if they can make it for a different jeweller. Again, they do not have to accommodate you but many will.

I'd be willing to bet that your policy will not simply send you cash in the value of the item. Your coverage is most likely based on replacement cost. So, they would replace the piece as best they can. For more standardized items (straight diamond engagement ring with a normal setting), they would actually just replace the stone and maybe give you some options for the setting. Due to their purchasing power, they are buying everything for less than you anyway. Ultimately, you need to read your policy. If you don't have a copy, request one.

People often assume that the purpose of insurance is to reimburse you for any losses - but this isn't the case! The purpose of insurance is to restore you to the position that you were in before the loss. So insurers aren't normally obliged to make a cash reimbursement. There's no reason why you can't request a cash settlement, but they aren't obliged to agree!