The most popular high-value items to insure include jewellery pieces and watches, computer equipment and musical instruments
The price of insuring high-value items within home insurance policies has risen by almost a quarter (24%) in the past 12 months, according to new data from Compare the Market.
High-value items, usually worth more than £1,500, should be specifically declared on a home insurance policy to ensure they are fully protected. Contents valued at less than this limit will be automatically covered. The typical cost of a home insurance policy that includes protection for high-value items such as jewellery, antiques or fine art has increased by £58 from £243 at the end of 2022 up to £302 in November 2023.
Adding high-value items to a home insurance policy will usually increase the cost of the premium. Compare the Market’s figures show a home insurance policy that includes cover for high-value items is £108 more expensive than a policy that doesn’t specifically protect any high-value items.
The typical cost of all home insurance policies has risen by £46 between December 2022 and November 2023. The increase in the cost of home insurance may in part be due to a rise in the cost of claims for insurers as higher inflation has made it more expensive to repair or replace items.
The average value of many expensive items has also increased due to inflation. The typical value of expensive items specifically listed on home insurance policies has increased from £3,877 at the end of 2022 to £3,919 in November 2023. The most popular high-value items in people’s homes are jewellery pieces and watches. Other popular high-value items include laptops, computer equipment, and musical instruments.
As the cost of home insurance has increased, more people have been shopping around to save money. Enquiries on Compare the Market for home insurance that specifically covers high-value items have surged by 55% in the past twelve months. Households could save up to £176 on home insurance through Compare the Market.
Helen Phipps, home insurance expert at Compare the Market, commented: “Households should be careful not to underestimate the value of any expensive single items, such as jewellery or a big-screen smart TV when buying home insurance. Most contents policies will have a maximum amount paid out for any one item. It’s often around £1,500 but could be lower or higher depending on the insurer.
“High inflation means some possessions may now be worth more than the single item limit, so the policy will only partially cover the cost of a replacement. We would encourage policyholders to check the limitations of their cover, for example, items taken out of the home and either lost or damaged could fall under personal possessions cover and may not be covered by the main home insurance policy. Shopping around for the right home insurance policy with the help of a price comparison website could help you get the cover you need at the best price.”
Tips for preventing and dealing with home theft from the Association of British Insurers:
How to prevent it?
Consider installing a home security system, such as burglar alarms or security cameras.
Make sure your property is properly secured. Make sure all doors or windows have locks and check the locks are in good condition.
Purchase a safe to store valuables in while away from home and provide an extra layer of security.
Hide your valuables when away from home for an extended period of time.
When leaving your property uninhabited for an extended period of time, such as for a holiday, do not advertise on social media, etc. Make your property look occupied to deter potential criminals.
Make sure your high item valuables are covered with an insurance policy.
What to do if it happens?
Report the incident to the police. Insurers often require a police report as proof that theft has taken place.
Make sure it’s safe to return to your property.
Contact your insurer as soon as possible to get the claims process started. Many insurers operate 24-hour helplines and will be able to advice you on the next steps and what will happen with your claim as it goes forward.
Document all damaged or stolen items. This can help speed up the claims process.
Document any emergency repairs you have to make, such as repairing locks or windows, and save the receipts. Your insurance policy will usually cover you for any emergency repairs you make following an incident.
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