Insure the smart way – specify the valuables you take out of home
“Not to worry”, you think, “I’ll just call my household insurance provider, they’ll replace it for me”. If only it was that simple. In reality even if you have ‘all risk’ or ‘comprehensive’ cover, it’s very unlikely that your insurance will cover your laptop if it wasn’t in your home when the incident occurred. This is because the laptop was not specified and, generally, the moment you remove an item from your home, it doesn’t fall under “household content” any longer.
What does it mean to ‘specify’ an item?
Specifying an item means that you specifically insure this item under your household insurance policy. In other words, it involves contacting your insurance provider and furnishing them with any information that they may require to confirm coverage from their side.
How do you specify your valuables?
You will be asked to supply details about the item you want to insure. Most likely, you will be asked for the value of the item as well as proof of purchase, but may also be asked to send through a valuation of the item you’re insuring.
Why do you need to specify?
Neglecting to complete this process may result in your insurance provider denying your claim in the event of an incident. This is why people call their insurance company and update their policy as soon as they take possession of a valuable item, like jewellery, a fancy camera or state-of-the-art laptop. For the ultimate peace of mind, even items like expensive works of art, cell phones, prescription glasses, handbags and handbag content need to be specified.
Will it cost more?
Presumably, yes. Although this does depend on your specific insurance provider and the particular insurance product that you have taken. Most commonly, the amount with which your monthly insurance premium will increase is determined by the value of the item being specified. Where you store the item, how regularly you travel with it and any other risk factors may also contribute to the cost of specifying.
Ultimately, the question you need to ask yourself is not if you can afford to specify your valuables, but if you can afford NOT to specify your valuables. Most of us can’t afford the loss, that’s why so many people contact our insurance providers.