What cover is typically offered for high risk items?
Under a standard contents insurance policy, cover for high risk items is only available for a set percentage of your total sum insured, say one third. So for example, if your sum insured is £30,000 then your high risk items would only be covered for £10,000 in total. If you lost high risk items totalling £13,000 in value, you would be £3,000 out of pocket in this example.
Alternatively, an insurance provider might offer high risk cover at a number of different levels, e.g. £6,000, £9,000, £12,000 and £15,000.
There may also be a limit on the amount of cover offered on each individual high risk item, which might for example be £1,500 or £2,000. Consider how many items you own that cost more than this? If a jewellery item worth £1,800 is stolen and your individual item cover is £1,500, you would need to pay the residue.
This could be less than ideal if many of your high risk possessions were stolen in a burglary, or if you lost almost everything in a fire.
Restrictions such as these demonstrate the importance of reading the small print of policy documentation before you make a decision to purchase. A particular insurance provider may be offering the cheapest headline price, but can they provide the cover you need for your high risk items?
If you have any high risk items of high value, say more than £1,500, then you should be looking at arranging separate insurance cover for these items.