Is Home Contents Insurance Suitable for High-Value Household Items

Have you ever worried about whether your high-value household items are covered by Home Contents Insurance? If you have any jewellery, expensive electronics or artwork, for example, you’ve come to the right place for expert advice and guidance. Home Contents Insurance from 1st for Women is the solution to protect your expensive possessions against theft, damages and losses. Discover more about how to go about insuring your high-value items.

Why Home Contents Insurance is suitable for your high-value items

Protecting high-value household items against unexpected loss or damage can be achieved with a Home Contents Insurance policy. It is important, however, to be aware that some standard policies come with coverage limits, including items such as jewellery, electronics, and art. Therefore, it’s necessary to specify these items in the policy. This will ensure that any replacement or repairs of these goods will be adequately covered by insurance, giving you the reassurance that you need.

To protect valuables such as jewellery, works of art or electronic devices, make sure that you specify them in your policy and provide receipts or appraisals for proof of value. In addition, you may have to show that they have been in safe storage if their value is over a certain amount. It’s also advisable to review your policy regularly in case you need to make any revisions so it aligns with the current value of your assets, ensuring any replacement or repair without having to pay huge sums in out-of-pocket expenses. This level of attention and management of your policy ensures that your Home Contents Insurance covers you and your valuables.

Make sure you've specified high-value items under Home Contents Cover

Make sure that your items will be adequately covered by evaluating their value and following the recommended steps (given below) to specify them on your policy. Let’s use a piece of art to illustrate the best way to ensure cover for a high-value item. 

Zinzi recently bought a sculpture by a renowned South African sculptor. Being a careful person, Zinzi already had Home Contents Insurance in place. However, when she checked the cover limit on her policy, she saw that it was far less than the amount she’d paid for her new artwork. She took a copy of the professional appraisal, the receipt, and a few photos of the art and consulted her insurer on how best to protect her new acquisition. By specifying her new sculpture and an appropriate coverage amount in her policy, Zinzi now has appropriate coverage and peace of mind. Here’s a step-by-step outline of the process that Zini followed: 

1. Review your policy: Review your current policy thoroughly. Make sure you understand what is covered when it comes to personal property, including any conditions. It is important to know that many standard policies limit specific values for certain items.

2. Appraisal of high-value items: For objects such as art, jewellery, antiques, and collectables, it is recommended to take them for a professional appraisal. This allows for a precise valuation of the item to establish the necessary insurance coverage.

3. Document the items: Make a list of all valuable items that need to be covered. This list should describe them in detail and include any pictures, invoices, or other documents that verify the existence and value of the items. This evidence is important if you ever need to make a claim.

4. Contact your insurer: Contact your insurance provider so that they are aware that you want to insure a high-value item. You may need to complete certain documentation to make additions to your insurance policy. You may also be expected to show appraisal information that you have collected.

5. Specify the coverage amount: Work with your insurance company to establish the ideal coverage amount per each high-value item. Providing appraisal or valuation data may be part of this approach. As such, make sure the coverage amount can cater for replacing the item due to loss, damage, or theft. According to a recent BusinessTech article, homeowners saw a 40% increase in the number of burglaries in the first two weeks of 2023 compared to the same period in 2022, highlighting the importance of having contents coverage in place to protect your property against any eventuality.

6. Review and adjust: Review your policy periodically, and where necessary, update it. Additionally, you should make sure that you change your coverage whenever there is a change in value for your items and with every new purchase of high-priced goods.

7. Keep records updated: Make sure you maintain accurate and up-to-date records. You must communicate with your insurance provider about any changes you might make to the collection, such as adding new items. By taking a proactive approach, you can make sure that all your property is well covered and its value fully compensated.

Types of high-value household items to specify

Household items that are high-value, such as jewellery, paintings, electronics, antiques and other collectables, might have a value that exceeds the limits of cover contained in a general Home Contents Insurance policy. It is highly recommended to insure them individually so that if they are lost, stolen or damaged, you can be adequately compensated. This includes:

• Jewellery: including engagement rings, inherited pieces of jewellery, expensive necklaces, watches and other valuables.

• Art and collectables: like paintings, sculptures and rare books.

• Electronics: plasma TVs, top-of-the-range audio/video equipment, cameras, and home theatre systems.

• Antiques: vintage furniture, china, or other antique items.

• Musical instruments: upmarket guitars, drums, violins and other instruments.

• Silverware and fine china: silverware sets, fine china and crystal.

• Wine collections: rare or expensive wine collections.

• Designer clothing and accessories: including high-end fashion products, such as luxury clothes, handbags, and shoes.

• Sports equipment: such as golf clubs and bicycles.

• Home office equipment: computers, printers and other office electronic devices.

When should a household item be insured separately from Home Contents?

Sometimes household items need to be covered completely separately due to coverage limits. Most standard policies specify maximum coverage amounts for personal property; however, this may be inadequate to match the full value of a particular item. As a result, these items should be insured individually to have them covered properly and at the correct value.

When the value of possessions exceeds a policy's limit, the importance of individual insurance becomes more significant. It should be noted that standard coverage may not provide the full amount needed to replace or restore these items in case of loss or damage. For example, this may mean that a normal policy will have a maximum cover for jewellery, falling short of covering the value of an item such as an engagement ring. Tailored coverage, commonly known as “endorsements”, is used to ensure individualised coverage of each item.

Insurers may also require documents, like the appraisal or receipt, for proof of the value of the item to ensure that the insurance is proportional to the worth of the goods. For example, when an engagement ring exceeds the standard policy limit, it will need supplemental or separate coverage. This will bridge the gap on normal coverage while also customising protection based on the asset's actual value – giving you peace of mind that such an expensive and sentimental possession is adequately covered.

Get a Home Contents Insurance quote from 1st for Women

Are you ready to safeguard your prized possessions? Visit 1st for Women and apply for a Home Contents Insurance quote now. We provide comprehensive coverage for high-value household items, ensuring financial protection against theft, damage or loss. Our friendly and knowledgeable team can provide customised cover for your valuables, so don’t hesitate to get reassurance today.