Guide to protecting your valuables – Money Perception

Brian Brown, head of insights at financial information business Defaqto, examined 435 standard home contents policies for the Sunday Express, and found that every one set cover limits on single items kept at home.

His figures show that 22 per cent set a maximum single item limit of £1,500 or less, with 1 per cent only covering items up to £750.

Just one in four automatically covers items worth £3,500 or more, and Brown says: “Between £1,500 and £2,500 is the most typical amount.”

Most insurance policies do not protect personal possessions away from the home, unless you buy this as an add-on.

If you do this, 60 per cent of policies restrict single item cover to between £1,500 and £2,000, with just 16 per cent covering items beyond £3,500.

Brown says if any of your belongings exceed these limits, you will have to specify them separately to your insurer, and pay an additional premium.

“How much you pay will depend on the type of item, as there are different charges for, say, jewellery, furs, antiques, works of art, guns and so on.”

Your premium will also vary according to the value of the item and whether you have installed household security measures such as locks and an alarm, he adds.

“Some may insist more valuable items are kept in a safe or refuse cover altogether if they exceed their underwriting limits.”

If you plan to take any valuable belongings out of the home, consider paying extra for away from home cover.