Am I being a dumb dumb?

nnich26 · 17 June 2018 at 12:23PM

My home insurance has expired and I'm getting quotes for a new policy.

However, I've just read something that I've never actually realised/must have read over in the past - so I've only myself to blame - but it's in regards to single listed valuable items

When I've looked at my old policy and renewal, and also these new quotes - regardless of the value of the item you are listing, there is a limit to the total amount the insurer will actually pay out to you in the event of a claim

so for example, say you list a £10,000 item of jewellery, the latest quote I had said it would not pay out more than £5,000 per item claimed

Am I being thick/ignorant that this is just something I've never picked up on before? Because I can't see the point of listing individual items if they won't be covered for their full value

Am I being a dumb dumb and missing something here?

I've read my old policy docs and cannot actually see anything that says it will cover like-for-like costs of single valuable listed items

If anyone can shed some light I would really appreciate it, as I don't know if I am just too tired or if I'm being incredibly thick

TIA - it's much appreciated :money:

paddyandstumpy · 17 June 2018 at 1:23PM

The limit per valuable is normally the unspecified limit, if it's valued above that then it needs to be listed as an individual item (the example you have was your £10,000 jewellery item).

nnich26 · 17 June 2018 at 2:03PM

This is where I am getting confused - as I've listed 4/5 individual items but my policy is stating this:

The maximum amount we pay for any one claim for valuables is £30,000
The maximum amount we will pay for any single item of valuable is £15,000

So if you had two pieces of jewellery which cam to £50,000, the most you would get back from a claim would be £30,000 - is how I've understood the above policy wording

If this is the case, and I have understood that correctly, then what is the point of insuring individual items, if their value is not going to be met in a claim

If I have misunderstood this, then please tell me where I am going wrong

TIA again

FutureGirl · 17 June 2018 at 7:35PM

Yes you're correct. If you have 2 pieces of jewellery that come to £50K the most you'll get is £30K because of the policies limit.

When you specify an item, it only means you'll get the full replacement value, rather than the single item limit for each item.

You obviously need a policy with a higher over all valuables claim limit.

nnich26 · 17 June 2018 at 8:39PM

Thank you for clarifying this

I am going to call them tomorrow about it - I just don't understand how people get better insurance for their valuables - as from the policies I've been quoted today this "limitation" is a common clause in the policies

And as I say, it's something I've never noticed before in the small print

agrinnall · 17 June 2018 at 8:42PM

I think for items of great value you may well be better off getting separate insurance specifically for those items. I'm pretty sure your best bet would be to speak to a good broker about this.

nnich26 · 17 June 2018 at 8:50PM

Thank you - I agree - I think this would probably be our best bet too as otherwise it will end up costings us thousands, and not necessarily 100% cover

Really appreciate the advice

tempus_fugit · 17 June 2018 at 10:15PM

The reason they ask you to specify the items is because although they may only pay out £15,000 on an item worth £30,000, they still need to know about the item, what it is, what its total value is etc, for underwriting purposes, i.e. so that they know the extent of the risk that they are taking. An item could be a higher risk due to its value, type etc.

pramsay13 · 17 June 2018 at 11:19PM

You should be getting quotes for a new policy before the old one has expired.

Am I being a dumb dumb?

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