One of the major clauses in content insurance is the single item limit, which we will discuss in detail today. Most of us live in an impression that our content insurance cover will manage the losses of all belongings and contents in case of a robbery or loss of item. However, the catch is that most home insurance providers apply the criterion of single item limit on the cover. The idea is to offer you a part of the actual cost of the expensive item and is limited to a set amount.
What is a single item limit in content insurance cover?
When you think about a regular content insurance cover , you can claim for the entire amount of the cover. The catch is that in the policy there would be single item limit which would be an assured amount of the range of between £1,500 and £2,500. So, you will be paid only the assured amount for a single item in the event of a claim by you. This payout would be irrespective of the value of the item and thus, put you on a losing end. In case, you lose a luxury item such as a piece of jewellery then you will need separate single item insurance cover for it.
Many of the UK content insurance providers ascertain that the valuables occupy only a small portion i.e. around 30% of the cover. Precisely, valuable means everything that is expensive – be it laptops, jewellery, music instruments, antiques or gadgets etc. In case, you own a luxury item or valuable that costs way beyond the assured amount then you need to inform the content insurance provider to mention it as a ‘specified item’ in the policy. This mention will help you get the total cost of the valuable and not just the maximum limit defined for a single item.
Keep in mind that you need proofs of ownership of the item in question. As per experts, these are minimum requirements for a content insurance cover and the policyholder should be careful about them. Also, one should be clear that UK home insurance providers can refuse the payout for expensive items by stating the single item limit clause. The best solution is to buy separate single item insurance cover for such items.
To conclude, buying the best content insurancecover is not an easy task as it comes with ‘strings attached’. The policyholder needs to be careful about the valuables and be prepared to lose out a huge chunk of the actual price of the item.
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