What is personal possessions insurance?

Key takeaways

• Personal possessions insurance covers items when they are outside your home

• Home contents insurance does not always include it as standard, but you can add it on

• For high-value items you may instead need specialist gadget or jewellery insurance

What is personal possessions cover?

Personal possessions insurance covers your personal belongings against loss, damage, or theft when you take them outside of your home. This makes it a different type of protection to home contents cover, which pays out if your belongings are stolen or damaged within your home.

The items covered vary from one policy to another, and you will sometimes need to specify what you want to protect to ensure you have the cover you need. It’s also known as “personal belongings cover”. 

Do I need personal possessions insurance?

If you want to protect your personal items in the event they are lost or broken away from home then you should have personal possessions insurance.

However in some cases it may already be included in your general home insurance policy, depending on the level of cover you’ve chosen. You could also buy a standalone policy for specific items. This could include mobile phone or gadget insurance. 

It’s worth checking and comparing the price of both options before paying out for more cover.

What is covered by personal possessions insurance?

Personal possessions insurance covers anything you take outside your home and the following items are usually included:

• Mobile phones

• Laptops

• Tablets

• Cameras

• Wallets, purses, and handbags

• Cash

• Keys

• Jewellery

• Clothing

• Musical instruments

• Bicycles

If you own lots of hi-tech items, you might find that dedicated gadget insurance offers greater flexibility and value than an extension to your contents insurance.

What is not covered by personal belongings insurance?

While personal belongings insurance provides basic cover for most items you take out of the home, it isn’t a catch-all for everything you have on your person when you’re out.

Very valuable items such as jewellery, gadgets, bikes, and designer handbags will need to be listed separately for you to claim the full amount should they be lost or stolen. The threshold is normally somewhere between £1,000 and £2,000, but this varies between insurers.

Other common exclusions include:

• Unattended possessions – for example when you leave items such as sports or camping equipment unattended.

• Items on public display – for example when you leave your mobile phone on the seat rather than in the glove compartment, even if the car is locked.

• Business equipment – this could mean a professional photographer’s camera, builder’s tools, or a company card or phone.

• Electrical or mechanical breakdown – for example when your possessions are damaged by an electrical fault.

• Wear and tear – including when your possessions are damaged by weather conditions, vermin, or insects.

• Cash – this may be protected but only up to a limited amount

To get the full picture, it’s best to check your policy documents or ask your insurer so you know exactly what is covered.

Will my possessions be covered if they're with someone else?

There may be times when your belongings aren’t with you, such as if you lend them to someone else, you’re moving house, or if they’re being mended. Your insurance policy will have details on when you are, and aren’t covered, in these situations. Some policies will cover you for the majority of scenarios while others may state that the items need to be with you.

How do I claim on my personal possessions insurance?

Claiming for a lost, broken, or stolen item with personal possessions insurance works in the same way as claiming with standard contents insurance. You will need to give your insurer details of the incident and proof of your ownership of the item, which could be a receipt or photos. You may also need to contact the police if the item is stolen and get a crime reference number.

Your insurer will then guide you through the process of the claim. It may ask for more details and to see the items (if you still have them) before it confirms the claim and pays you the money for it.

Will I have to pay an excess to make a claim?

When you make a claim on any insurance policy, you’ll normally have to pay an excess. These excess payments are the portion of the total claim cost you cover yourself, while the rest is paid by your insurer.

Choosing a higher excess level when shopping for home contents insurance can sometimes reduce your premium. But bear in mind that the excess you pay for claiming on your personal possessions policy may be different to the excess due on standard home contents claims.

It’s also important to note that making a claim is likely to affect your home insurance no-claims discount, so it could be worth picking up the tab yourself for minor losses.

What affects the price of personal possessions insurance?

The price you pay for personal possessions insurance will vary depending on your insurer. It is an add-on you can pay for on top of your standard contents insurance and some providers charge a flat rate while others may charge you depending on the following factors:

• Address – if you live in a high-crime area this could impact the price.

• Value – you’ll usually pay more if you’re covering more expensive items.

• Past claims history – if you’ve made previous claims on your contents policy, you may be charged more.

• Location of items – if you’re taking items out of the UK this may push the price up (or you may only be covered in the UK)

• Excess – if you opt for a higher excess then your insurance may be cheaper.

Are my possessions covered at university?

The personal possessions cover bought alongside home insurance will not always cover family members living in university halls or other student accommodation. Indeed, while some home insurance policies automatically include contents insurance for students, others only offer it as an extra for an additional fee.

Can I be over-insured?

Yes, you may be over-insured if you’re paying for insurance on items you don’t need or you’ve over-valued your contents.

You can also be over-insured if you’re paying for the same policy twice. This might happen if you get cover from another source. A common example is a manufacturer's extended warranty.

If you have standalone gadget or bike insurance then there might be no need to add personal possessions cover.

How do I add personal possessions cover to my home insurance policy?

Personal possessions insurance is usually offered as an optional add-on to a home contents insurance policy. When you compare home insurance quotes with MoneySuperMarket you can select this as an option. You may be asked questions about your property, such as the contents you want covered and the security features in your home. You could also be asked to list certain possessions that you want specifically protected by personal possessions cover, especially if they are valuable.

When reviewing quotes, don’t shop by price alone – you’ll need to consider any additional extras included, as well as things like customer service reviews and whether items will be covered outside the home.