Home Insurance UK - Q&A: What is Covered by your Policy?

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What is Covered?

• How much should I insure my contents for?
• Are my personal possessions covered when I take them out of my house?
• What happens if I take them outside the UK?
• Will my bike be covered under my home insurance policy?
• If I bought something second hand, or have had it for several years, how much will the insurance company pay out if it is destroyed or stolen?

Q: How much should I insure my contents for?

A: The best thing to do is to get a A4 pad, and go round each room one by one and write down the cost of EVERY single item of any value in that room. Remember that one CD might not appear to be worth very much, but a typical CD collection may be worth several hundred pounds. When you are undertaking this exercise, consider how much it would cost to replace each item in the event of a fire.

Q: Are my personal possessions covered when I take them out of my house?

A: Most insurance companies offer you extra cover to protect your personal belongings outside the house. However, there will be a number of restrictions for this. Remember that it is not possible to insure the same item twice under two different policies. For example, if your car is broken into, and items from your house are stolen from it, they should be covered by your car insurance policy, not your home insurance.

Q: What happens if I take my possessions outside the UK?

A: These are unlikely to be covered by your home insurance policy. You should always have travel insurance, whenever your travel abroad, or go on any journey by air or ferry.

Q: Will my bike be covered under my household contents insurance policy?

A: This depends on your policy. Some will include pedal cycles upto a limit, typically of £500 per bike, or £1000 per claim if more than one bike is stolen. Some may require you to fit high security locks to the bikes, and to ensure that any shed they are stored in is properly secured. You should always check the details of your policy - never assume that items such as bikes will be insured.

If your bike is particularly valuable, you may wish to consider a separate cycle insurance policy.

If I bought something second hand, or have had it for several years, how much will the insurance company pay out if it is destroyed or stolen?

This will depend on the type of policy you have. If you are covered "new for old", the payout will cover the full cost of replacing the item, at the current high street price. If your policy pays out according to the actual value of the item before loss, you will get a much lower amount, based on its age, and depreciation.