Tag Archives: loss adjuster

High-Value Possessions — How to Make Sure They’re Covered by Your Insurance

Our last newsletter, on setting the right level of contents cover, seems to have sparked a lot of interest, judging from the questions we’ve received. Many of these have been about the thorny issue of high-value possessions.

What Are High-Value Possessions?

Put simply, a high-value item is any possession valued at above the allowed level specified in your insurance policy. Most people think in terms of jewellery and watches, but it could be books, art, collections, equipment or even clothing. And they’re not only at risk of burglary. Fire or flood can destroy possessions of high monetary or sentimental value.

You may have some idea of the value if you’ve bought the item yourself, though it may still be higher than you thought, but if you’ve received it as a gift the chances are you won’t know the value. If you’re in any doubt at all, it’s best to get items valued, and they should be specified in the policy if they’re above the value — otherwise, the Insurer’s loss adjuster is likely to refuse payment for them.

In almost every case Allied Claims comes across, the policy-holder assumed it would never happen to them. In one recent case, for instance, the claimant lost out on an entire £91,000 claim because they were under-insured and hadn’t specified several high-value items.

How Do I Make Sure I’m Covered?

It would be easier if there were a one-size-fits-all procedure, but the reality is that each Insurer has different criteria for what constitutes high value and what kind of proof you need for claiming. It’s up to you to check this, but the basic steps that are usually needed are:

  1. Identify the high-value amount per item set by the Insurance Company.
  2. Disclose and itemise each relevant piece in the policy.
  3. Photograph each item and keep all the photos in a safe place.
  4. Keep the original invoices if you’ve bought the item yourself.
  5. Have valuations done every few years for each item by a reputable dealer who knows what they are doing.

This won’t necessarily be all, though. The Insurer may well impose extra conditions, such as burglar alarms and safes, or they could require particular items to be kept in a safe depository. They need to be aware of the value to determine what’s necessary, though, and if you don’t inform them your insurance claim could be invalid.

Insurance Claim and Occupancy Clause on Household Policies

Water damage insurance claim

Before you make an insurance claim on any insurance policy you have, it’s essential to read through all those fine-print clauses. Yes, it might be boring, but not nearly as bad as being hit by a restriction you weren’t expecting when you try to make a claim.

A case in point is the Occupancy Clause.

Most home insurance policies, and the majority of policies for commercial properties, include a clause that addresses the “occupancy issue”. The exact wording will vary from policy to policy, but what they all say boils down to stipulating a maximum length of time the property can be left unoccupied, if you need to make an insurance claim is usually 30 days.

If you’re intending to leave the property unoccupied for longer than this, the Insurer must be notified, preferably in writing or by email, and specified actions must be taken by the Policy holder. The most common are that the heating must be kept on, bi-weekly visits must be made, and that an alarm must be installed.

However, it’s vital to check exactly what your policy says and make sure you know what needs to be done, in addition to informing the Insurer if the property is going to be empty for more than 30 days.

This can apply to any circumstances when the property will be unoccupied, but it’s particularly relevant to anyone letting out a property. The landlord must notify the Insurer as soon as the tenant has moved out. In many cases, the landlord will be making repairs or decorating before the new tenant moves in, and this can easily stretch out beyond 30 days so watch out if you are about to make an insurance claim.

Whether your insurance is for a domestic or a commercial property, make sure you know your obligations under the Occupancy Clause. If you don’t, there’s a good chance that you’ll be left without a penny if you have to make a claim.