Insurance: How to Value Contents Carried on Your Person

personal-insurance-itemsIt’s all very well insuring your household contents, but what happens to the items you carry with you, such as your wrist watch, mobile phone, laptop or tablet, MP3 player? Unfortunately, in the world we live in today, we need to insure the items that we carry on our person, as well as those we have in our homes, in case of theft or loss.

All-Risks Cover

The items that you carry on your person are regarded as household contents as they are generally in possession whilst you are at home, so they fall under the household contents’ list and need to be valued accordingly. However, most insurance companies offer an optional extra cover, known as ‘All-Risk Cover’ that protects you against the loss of these items whilst they are ‘out’ of the house and on your persons, such as wristwatches and jewellery, laptops, iPads and mobile phones. Some policies also offer cover for such items on trips abroad, for up to 60 days – make sure to check with your insurer.

Two Types of All-Risks Cover

There are two types of all-risks cover. Firstly, you can choose an overall value for ‘unspecified’ items without having to list and assess each item. This type of cover will pay out a single amount, regardless of what items were lost and their value. The second type of ‘specified’ all-risks cover allows you to evaluate each item according to its worth and one which will pay out a market-related value of the item lost.

Most policies proved a list of items that need to be specified, for example:

  • Contact Lenses/Spectacles
  • Vehicle Sound Equipment
  • Specified Clothing and Personal Effects
  • Cellphones
  • Photo/Video Equipment
  • Portable/Hand-held Electronic devices
  • Sports/Recreational Equipment
  • Firearms
  • Musical Instruments
  • Collectables/Antiques/Artworks
  • Tools
  • Portable Computers and Accessories

As with household insurance and evaluating your items, bear in mind that underestimating the value of items can lead to a shortfall in your insurance claim pay-out, while overestimating the value of things can lead to extra high premiums every month, so it pays to be honest. Always remember to check with your insurer what your household policy covers, whether items carried on your person outside of the house are covered, and if not, whether they offer an All-Risks Cover policy.

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