What would you do if you suddenly lost everything in your home? Buying all of your personal goods again would cost a fortune. Which is why many people choose to insure the contents of their homes with personal goods insurance. Also sometimes known as personal belongings insurance or personal items insurance. What is personal goods insurance?

What would you do if you suddenly lost everything in your home? Buying all of your personal goods again would cost a fortune. Which is why many people choose to insure the contents of their homes with personal goods insurance. Also sometimes known as personal belongings insurance or personal items insurance.

What is personal goods insurance?

Personal possessions insurance covers loss or damage to all the items in your home. Only if these items are not part of the physical structure of the building. Because of this distinction, it is a separate form of home insurance. It is thus quite distinct from buildings insurance.  You can usually buy both types of home insurance separately. In many cases however, you can get them as a joint policy from one insurance company.

Personal items insurance can cover items such as:

  • Appliances
  • Furniture
  • Valuables such as jewelry
  • Clothing
  • Artworks
  • And more…

Personal goods insurance can also extend to items that leave the house with you, such as watches, briefcases, laptops, tablets, MP3 players etc.

Personal goods insurance for valuables

When deciding on a personal goods insurance policy, you will have to check your insurer’s definition of what items can be considered insurable valuables, as this can vary widely. It is a good idea to tell your insurer about all of the high-value items in your home and provide proof of purchase if requested. Before finalising your personal goods insurance agreement, ensure that these items are properly listed on your policy document.

Keeping your policy up to date

It is your responsibility to keep your insurance company up to date with your circumstances and the state of your household and personal goods. If, for example, you decide to get engaged and purchase an engagement ring, or you get a bonus at work and decide to splurge on the latest flat-screen TV or a flashy laptop, you’ll probably want these to be included on your policy as soon as possible. You may also need to update your policy if you’ve made a series of major purchases and upgrades that you believe warrants an increase on the sum for which your goods are insured.

So if, for example, you swap out your old furniture for new pieces that are worth several times as much, it is important to make sure your policy always accurately reflects the value of your goods.