What is covered under home insurance
Policies issued by all Insurers are slightly different.
It is important that you read the detail of your own Home Insurance Policy to ensure that the cover is in accordance with your requirements.
The following is for general information purposes.
The property covered under the Contents Section of a Home Insurance policy is generally defined as
Household goods and personal effects (including Money and Valuables up to the limit shown in the schedule) which are yours, or for which you are legally responsible or belong to a domestic employee.
The policy may also cover
- home working equipment with a maximum limit
- Visitors personal belongings with a maximum limit
In addition if you are not responsible for Buildings Insurance (If you are a tenant) it will also cover fixtures and fittings, decorations that you are liable for because you are a tenant or own them.
In the policy Money is defined as
Cash, cheques, money orders, current postage stamps,(not part of a collection) National Insurance Stamps, saving stamps, or certificates, premium bonds, travellers cheques, travel tickets, season tickets, luncheon vouchers, gift tokens and phone cards all held for social, domestic or Charitable purposes.
It is important to note that it does not include business money of any kind this should be insured under a separate Business Policy
In considering cover the definition of Valuables varies between policies and it is important to ensure that you carefully read the definition in your policy. Sometimes Valuables are referred to as High Risk Items.
Cover under a policy is specifically restricted in the case of Valuables there is normally a maximum value for any one item or percentage of the sum insured (it will be shown on the schedule or in the policy) and also an aggregate value for the maximum amount recoverable for valuables again either a maximum limit or a percentage of the sum insured (again shown on the schedule or in the policy)
Below there are two definition of Valuables both of which are taken from current policy wordings
Stamp coin or medal collections, antiques (not including furniture) collectables, pictures, works of art, items made of gold, silver
or other precious metals, jewellery watches and furs
Televisions, personal computers, audio and visual equipment, jewellery, items made from precious metals, clocks, watches, furs, pictures, works of art and stamp or coin collections.
In the case of Definition 2 this puts a severe restriction on the cover available under the policy. Although you may have a Contents Sum Insured of ВЈ50,000 the single article limit may be as low as ВЈ1,000 and the aggregate value limit could be as low as ВЈ5,000. in the event of a claim the maximum value of any one Valuable Item would be restricted to ВЈ1,000 and the maximum value of all Valuables would be restricted to ВЈ5,000.
In the case of Definition 2 you would probably suffer a substantial uninsured loss
It is therefore important to Check your policy wording and make sure that you understand what the policy covers and what limits are applied.
If the cover does not suit your requirements you may be able to ask the Insurer to increase the Valuables limit and also the Aggregate Valuables limit to suit the contents of your home or alternatively shop around for another policy.
Valuables in Excess of the Single Article Limit
All Insurers differ in the way that they deal with Valuables in excess of the Single article limit. Some policies will specifically exclude any item in excess of the limit others will pay up to the maximum amount (read the Policy).
Any Valuable in excess of the limit should be insured specifically. Some Insurers will require Valuations to confirm the Value of the Item. In the case of Hi Fi systems and cameras these should be broken into component parts and therefore each part is likely to fall within the Single Article Limit.
Personal Possessions / Valuables Outside the Home
See the Link on the Navigation Panel
Typical Cover or Standard Perils Cover of a Home Contents Policy
Insures the contents against the following items. Again we would stress that you need to read your own Home Insurance policy specifically with regard to exclusions.
Typical Perils Cover, is indicated under the What is Covered Under The Building Section of the Policy see Link on Navigation PanelSource: www.homeinsuranceanswers.org