Consumers carry unprotected fortune in their pockets

UK consumers are carrying as much £1000 worth of electronic devices and jewellery out of their homes on a regular basis and much of it is not insured.

With millions of mobile phones, MP3 players, laptops and digital cameras weighing down consumers’ bags and pockets across the land, it will come as a shock to many people that portable possessions are not covered by typical home contents insurance when they are taken out of the house.

New statistics from price comparison website moneysupermarket.com show that personal possession cover can be added to a home insurance policy for as little as £14.25 a year, and £36 a year on average.

Recent government figures, which reveal that the number of UK muggings rocketed in the last quarter of 2006, only serve to highlight the importance of being adequately covered.

Richard Mason, managing director of insurance at moneysupermarket.com, said: “It is essential for people to ensure, when carrying expensive items such as a laptop or MP3 player, they consider additional cover on top of their standard home contents insurance.”

“Jewellery, iPods, mobiles and laptops are particularly at risk because they are visible to any opportunist thief,” he explained.

He also recommended that consumers check their policy carefully to ensure that any additional possessions cover provides for extra expenses related to portable items, such as a new hard disk or graphics card purchased for a laptop computer, or the cost of an album downloaded from the internet.

“If you are in doubt you should contact your insurer and check what is offered on your existing policy and think carefully about extending this cover for your portable valuables.”

Most insurers will either repair or replace a possession if a claim is made on it as standard. However, in the event that this is not possible, insurers tend to stipulate the maximum value they will pay out in the policy’s small print.

In the case of expensive portable possessions such as laptops or jewellery, it is important that customers make sure the maximum limit stated is enough to fully cover the value of these items.

The maximum limit can vary tremendously between insurers. While Esure offers possessions cover up to £60,000, Norwich Union specifies a maximum limit of £1,500. A high powered digital camera or a particularly expensive watch could easily exceed £1,500 in worth, so it is vital that customers research policies carefully to find the deal most suited to their needs.

“It is always essential to read the small print of the policy too; make sure you can actually make a claim and the insurer will honour it,” Mr Mason advised.

“If you have your golf clubs stolen from the clubhouse while you have a shower, or you leave a jacket over the back of your chair and an iPod is stolen from the pocket, would you be covered?

“Check your home contents insurer is providing the level you need on personal possessions cover. And check you are paying a fair price for it.”