When insurance is taken out on our homes it is most probably presumed that everything in them is covered, however, this is not necessarily the case.
The possible exception is the information on the items that we may take with us when we leave home, namely our electrical gadgets such as the ever popular ipod. The problem for insurance companies is that modern technology is changing so quickly that their policies cannot keep up with this, meaning many people’s possessions may end up uninsured.
The main concern for people, who have their Mp3 stolen for instance, is that the information stored on them is often a lot more expensive and therefore more valuable than the actual device. However, it is often the case that the home insurance that has been taken out does not cover the information held on the device, and with Home Office figures showing that there has been an 8% increase in street robberies, it is now even more important to check that your house insurance covers items outside of the house and if not, to choose the extended cover or ‘all risks’ home insurance as this will then have your items covered outside of the house as well. The only reason your item outside of the house will not be covered then is if it is stolen after being visible in a public place.
In some insurance policies, it will depend on the wording in the contract to determine whether or not the information on the device is insured, for example, some will differentiate between software and data and this will determine whether or not they are covered. Some policies will only allow a certain amount of downloads and in this case, it will not depend on the classification but on whether or not you have suffered a financial loss.
With The Association of British Insurers stating that one in 7 of us are unsure as to whether or not even our gadgets are insured, it is definitely well worth looking into our policies more closely instead of simply opting immediately for the standard cheap home insurance.
About the Author
Gill Critchley is a UK based author with experience within the financial industry centering on the insurance sector.
The possible exception is the information on the items that we may take with us when we leave home, namely our electrical gadgets such as the ever popular ipod. The problem for insurance companies is that modern technology is changing so quickly that their policies cannot keep up with this, meaning many people’s possessions may end up uninsured.
The main concern for people, who have their Mp3 stolen for instance, is that the information stored on them is often a lot more expensive and therefore more valuable than the actual device. However, it is often the case that the home insurance that has been taken out does not cover the information held on the device, and with Home Office figures showing that there has been an 8% increase in street robberies, it is now even more important to check that your house insurance covers items outside of the house and if not, to choose the extended cover or ‘all risks’ home insurance as this will then have your items covered outside of the house as well. The only reason your item outside of the house will not be covered then is if it is stolen after being visible in a public place.
In some insurance policies, it will depend on the wording in the contract to determine whether or not the information on the device is insured, for example, some will differentiate between software and data and this will determine whether or not they are covered. Some policies will only allow a certain amount of downloads and in this case, it will not depend on the classification but on whether or not you have suffered a financial loss.
With The Association of British Insurers stating that one in 7 of us are unsure as to whether or not even our gadgets are insured, it is definitely well worth looking into our policies more closely instead of simply opting immediately for the standard cheap home insurance.
About the Author
Gill Critchley is a UK based author with experience within the financial industry centering on the insurance sector.
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