Are Your Most Valuable Possessions Fully Covered By Your Home Insurance Policy?
When you take out home contents insurance you provide a value of your home's contents to the insurance provider, and cover for that value will be arranged.
You could be forgiven for thinking that if the worst happened and your possessions were destroyed or stolen, that you'd be able to claim the full replacement cost back from your insurer - but this isn't necessarily the case.
Devil In The Details
Take a look at the small print of your policy document, and you might well find that there's a limit on the amount you can claim for any one item. This is likely to be especially true with policies at the cheaper end of the spectrum. If you have possessions which are worth more than this limit, such as jewellery or antiques, they won't be fully covered under the terms of your policy.
To get these items fully insured and protected, they need to be specifically mentioned on your policy, with a description and value - they then become 'named items'.
Higher Premiums - So Shop Around
If you add named items to your policy, it's likely that the level of cover you're asking for will increase, and so therefore will your premiums. At this point it may be worth looking around for a cheaper provider using the many price comparison services available, or alternatively it may be possible to insure your valuable items seperately with a different specialist insurer for a lower cost than that offered by general home insurers.
DISCLAIMER: All content is for guidance only and does not constitute individual financial advice.
www.homeinsuranceinfo.co.uk is not authorised by the FSA to advise on insurance matters.
