The cost to cover high-value items on a home insurance policy has shot up by 24% in 12 months, a price comparison site reveals.
For homeowners looking to insure their property with luxury or expensive items included, they’d now need to stump up an average of £302 per year.
According to data from Compare The Market, the average price to cover those possessions in November 2022 was £243, meaning there has been a £59 jump in just one year.
The increase is symptomatic of a rise in premiums across the whole home insurance sector – the average cost for a policy rose by £46 from December 2022 to November 2023. But, the annual cost for standard cover is still £108 less expensive than if you are looking to insure pricier assets.
Any item over £1,500 should be included in high-value home insurance
Households need to declare the higher-value goods in their cover, so they are fully protected and receive the correct payout from insurance companies in the event the items are damaged or stolen.
Any possessions worth over £1,500 are generally considered by insurers to be higher value, with the most popular assets including jewellery, computers and musical equipment.
Due to the UK’s high inflation rates, the typical value of the items listed on home insurance policies has surged since 2022, going from £3,877 at the end of that year to £3,919 in November 2023. And with the price of the goods rising thanks to inflation, the cost for insurance companies to either replace or repair them has also gone up.
‘Don’t underestimate expensive items’
Helen Phipps, home insurance expert at the price comparison site, said: “Households should be careful not to underestimate the value of any expensive single items, such as jewellery or a big-screen smart TV when buying home insurance.”
Phipps added: “We would encourage policyholders to check the limitations of their cover, for example, items taken out of the home and either lost or damaged could fall under personal possessions cover and may not be covered by the main home insurance policy.
“Shopping around for the right home insurance policy with the help of a price comparison website could help you get the cover you need at the best price.”
Tips on how to avoid home theft
The Association of British Insurers (ABI) has provided some handy hints to protect your prized possessions by avoiding home theft.
- Consider installing a home security system, such as burglar alarms or security cameras.
- Make sure your property is properly secured. Ensure all doors or windows have locks and check the locks are in good condition.
- Purchase a safe to store valuables in while away from home and provide an extra layer of security.
- Hide your valuables when away from home for an extended period of time.
- When leaving your property uninhabited for an extended period of time, such as for a holiday, do not advertise on social media. Make your property look occupied to deter potential criminals.
- Make sure your high-item valuables are covered by an insurance policy.
What to do if your valuables are stolen
- Report the incident to the police. Insurers often require a police report as proof that theft has taken place.
- Make sure it’s safe to return to your property.
- Contact your insurer as soon as possible to get the claims process started. Many insurers operate 24-hour helplines and will be able to advise you on the next steps and what will happen with your claim as it goes forward.
- Document all damaged or stolen items. This can help speed up the claims process.
- Document any emergency repairs you have to make, such as repairing locks or windows, and save the receipts. Your insurance policy will usually cover you for any emergency repairs you make following an incident.
