When you take out a home insurance policy that includes contents cover, the items in your home will be protected for a number of perils such as theft and fire damage.
Many people claim on their home insurance for items that have been lost or stolen whilst outside the home, for example, losing a piece of jewellery or having their handbag stolen on a night out. Unfortunately, when it comes to making a claim on a contents policy, unless personal possessions cover has been purchased there could be no payout!
What is personal possessions cover?
Personal possessions cover is insurance for items that you wear or carry on your person when you are outside your home, therefore not covered by your standard home insurance policy.
It can however be added on to your home insurance policy for an additional premium.
There are two different options of personal possessions cover – unspecified and specified.
When your individual items are valued at £1,000 or less, they should be covered under the unspecified option. In this option, you can choose a total cover value to suit your need. For example, if your personal items add up to around £500, you should set your total value to this amount to avoid paying more than you need. If you have items which have the value of more than £1,000, they should be covered by the specified option, which means you cover each named item.
How does personal possessions cover work?
Taking out personal possessions cover will insure the items and belongings of your immediate family members living at your home address.
Your items will be covered when you take them anywhere in the UK and can also include a number of days abroad meaning they will be insured whilst away on holiday.
What can be covered by personal possessions insurance?
Some common items that can be covered by personal possessions are as follows:
- Items of jewellery
- Mobile phones
- Wallets/purses (usually including up to £500 cash)
These are not the only things that you may cover with this type of insurance. Most things that you can carry on your person whilst out of your house can be included.
As with any insurance policy, there will be exclusions to personal possessions cover. This can differ from one insurer to another so you should always check beforehand. Common exclusions are:
- Wear and tear to your goods
- Possessions that are left unattended
- Items that are left in an unlocked car
Do you need personal possessions cover?
Before you take out personal possessions cover, you should always check a number of things beforehand, as you may find you already have sufficient insurance. Things to check could be:
- Bank accounts
- Travel insurance policies
- Credit/debit cards
- Home insurance/contents cover
The reason for checking the above is that they sometimes offer cover on certain items.
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