Personal effects are property used for domestic purposes or for occasional business use. You or your family should either own them or be legally responsible for them.
They can include:
clothing, including motorcycling suits, furs, glasses, contact lenses and hearing aids, baggage and other items carried about the person, photographic and mobile phones, electronic equipment, sports equipment and bicycles, musical instrumentsX
Your contents, personal effects, fine art, antiques, jewellery and watches are insured against loss or damage - including accidental damage - while you're at home or anywhere in the world.
Legal cover is not usually compulsory on home insurance, but this can provide you with legal assistance for personal injury cover and consumer disputes. So for example, if you walked past a building site and were hit by a brick, the insurance company could pursue a claim on your behalf against the building company for personal injury.
This can be considered as jewellery, articles containing gold, silver or other precious metals, cameras, binoculars, watches, furs, paintings and other works of art, collections of stamps, coins and medals.
Basically your house contents are anything that you would reasonably take with you if you moved - your bathroom suite wouldn't be considered to be your household contents for example. Another way of thinking about it is to imagine picking up your house and shaking it - everything that would fall out is considered to be your contents.
Insurers will apply a clause in your policy called average. Essentially this means that if you insured your contents for £20,000 and they were actually worth £30,000, you are underinsured by 1/3. As a result if you put in a claim for £10,000 the insurers would only have to pay you 2/3 of the claim (assuming it was valid etc), therefore you would receive a claims settlement of £6,666, not the £10,000. As a result it is important that you insure for the correct amount. Underinsuring will result in any claims being restricted on their payout. This clause is very common in domestic policies, but not many people actually know about it... until they have to claim and have got their sums wrong...don't say you've not been warned!
In order to buy insurance you must have an 'insurable interest', basically you have to own whatever it is you are trying to insure. In this case if you rent your accommodation you will not, in most circumstances, own the building. As a result you cannot insure it, you can only insure your own personal belongings within the building.
Independant Financial Advisor
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