New for Old Household Insurance - High Value Items

I am looking to renew our household insurance policy. I have a lot of high value items as cameras & lenses, several high end hi-fi's, several luxury Swiss watches and expensive road bikes. In price comparison sites like Comparethemarket.com it says to state value of specific items over £1500 and bicycles.

I always chose new for old policies. I've always declared the values in this section as the original RRP since its new for old. Even though some items like some hi-fi components and watches were bought used. I'm now wondering if this is correct. I'm not sure if I should be declaring the current value and have been overpaying for insurance.

Hope someone can clarify.

Comments

  • I have come online today to ask the same, so I hope somebody knows! In our case, the renewal (which is £££) seems to have increased all prices on our named items (which consist of bikes and jewellery), it's going to take me ages to find the original values of these things to do comparison quotes... They've even upped the value of a ring that I only added to the policy 2 months ago which seems ridiculous.
    Fingers crossed somebody knows the answer though!
  • DullGreyGuy
    DullGreyGuy Posts: 10,380 Forumite
    First Post First Anniversary Name Dropper
    I am looking to renew our household insurance policy. I have a lot of high value items as cameras & lenses, several high end hi-fi's, several luxury Swiss watches and expensive road bikes. In price comparison sites like Comparethemarket.com it says to state value of specific items over £1500 and bicycles.

    I always chose new for old policies. I've always declared the values in this section as the original RRP since its new for old. Even though some items like some hi-fi components and watches were bought used. I'm now wondering if this is correct. I'm not sure if I should be declaring the current value and have been overpaying for insurance.
    The value you have to declare over varies by insurer, aggregators obviously have to deal with the lowest common denominator so tend to be £1,000 but some insurers may only need items over £10,000 (or more) declared. 

    You shouldn't be using the original RRP, you need to use the current RRP of the item or the nearest equivalent item unless you believe its an exception and so its secondhand price is higher than the new model RRP (eg some rare rolexes are vastly more expensive than their modern equivalents even though their RRP in the 60s were a couple of hundred).

    For some things it can be easy... an Omega Speedmaster doesn't vary that much year on year and so you can find the modern model easy enough. HiFi and such can be more complex because technology moves on and a top of the line TV from 5 years ago doesn't equate to a top of the line TV today. 

    I have come online today to ask the same, so I hope somebody knows! In our case, the renewal (which is £££) seems to have increased all prices on our named items (which consist of bikes and jewellery), it's going to take me ages to find the original values of these things to do comparison quotes... They've even upped the value of a ring that I only added to the policy 2 months ago which seems ridiculous.
    Fingers crossed somebody knows the answer though!
    They will index link the prices of the items and the system wont be sophisticated enough to consider when it was purchased. 


    Being underinsured is a very bad thing, most policies have an averaging clause meaning that if you insured your contents for £25,000 and have a claim and its discovered your contents is really worth £50,000 then your claim will be reduced by 50% to represent the fact you are 50% underinsured. So rather than getting the £2,300 for your £2,500 laptop less your excess you instead get £1,050.

    General rule of thumb, it's much better to be over insured than under. Remember also its all contents you have to consider not just the big stuff, you'd be surprised how quickly all the kids toys adds up or the kitchen gadgets you've bought and have only used once. 
  • huckster
    huckster Posts: 4,821 Forumite
    First Anniversary Name Dropper First Post
    For high value Contents Insurance buying policies online is a bit risky. Suggest always speaking to Insurers/brokers so the policy is correctly tailored, as some items will need to be specified with evidence of ownership fully documented.

    Also depending on where you live, the Insurers may have minimum levels of security required e.g. locks of a certain standard on doors, alarm, safe for jewellery.

    If you don't ensure the Insurance is tailored to match the risk, you may find that in the event of a claim, the Insurers may not pay the claim or the settlement does not reflect the replacement values.
    The comments I post are personal opinion. Always refer to official information sources before relying on internet forums. If you have a problem with any organisation, enter into their official complaints process at the earliest opportunity, as sometimes complaints have to be started within a certain time frame.
  • DullGreyGuy
    DullGreyGuy Posts: 10,380 Forumite
    First Post First Anniversary Name Dropper
    huckster said:
    For high value Contents Insurance buying policies online is a bit risky. 
    It really depends what is considered "high value". Some would say £50k of contents is high value but for example the Hiscox 606 policy has a minimum contents of £150k excluding valuables. 

    There are many policies out there online that comfortably deal with the "Mass Exclusive" types but you do need to read the policy to ensure inner limits are appropriate and dont just look at the headline. You can avoid that by using a broker but my experience is they are notably more expensive for similar cover. A line by line review of an NFU policy against our current online policy showed no material benefit but for the Personal Possessions cover alone they wanted over £1,500 which is over 3 times the total premium for our contents including PP. 
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