they have said they will only offer £5000 for a cash settlement I insured the ring specific for £8471 and they stated I had to wear it at all times
You need to write a formal complaint and set out your position. The insurers will then investigate the matter and report back.
Once you have their final response you can then go to the Ombudsman if you wish
The Ombudsman is free, independent and can examine your complaint for you.
Their website is: www.financial-ombudsman.org.uk
This may resolve your complaint.
If it does not then you should write to the insurers and set out your losses and request a payment within 14 days or say you will go to Court within 14 days. You should make sure you send this recorded delivery and keep a copy.
If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.
The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.
If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.
Can I clarify anything for you about this today please?