Everyone routinely takes personal valuables outside of the home, whether it's by wearing jewellery or cycling to work — or simply carrying your mobile phone — but does your insurance cover you for loss of these items? Many insurance policies don't.
Your home and contents insurance may not cover your belongings outside the home unless you've specifically asked for them to be insured under portable contents cover. Here's how it works.
What is portable contents insurance?
Also called personal effects cover, portable contents insurance can be added to your home and contents policy for additional premium to provide protection for items taken outside the home against theft, accidental loss or damage. To put this risk in perspective, nearly half (45%) of non-vehicle property thefts in Australia occur in retail locations1.
Most policies apply to anywhere in Australia and New Zealand or worldwide for up to 90 consecutive days, covering items you take wherever you go, such as watches, phones and handbags, as well as those you may only take out on specific occasions, such as musical instruments or your laptop.
Specified and unspecified items: what's the difference?
Portable contents insurance cover may be offered for items that are specified or unspecified.
Unspecified items don't need to be separately listed but the total amount of cover will be capped, at $1,000 per item or $5,000 in total, for example.
Specifying particularly valuable items enables them to be insured for a certain amount, and these are separately listed. Some insurers require items worth more than $1,000 each to be specified in order to cover them for their replacement value (less any excess) and some items must be specified regardless of their value.
What portable contents insurance may cover
The scope of insurable items is generally broad and may include the following categories:
- mobile phones
- cameras and photographic equipment
- jewellery and watches
- suitcases and bags, handbags, briefcases, wallets and purses
- clothing, shoes, spectacles and sunglasses
- cosmetics and toiletries
- portable electronic devices (such as tablets and laptops)
- video game consoles, drones, and their accessories
- bicycles and personal mobility devices
- recreational or hobby items (like sporting equipment and musical instruments)
- permitted medical and health items (such as hearing aids, prescription glasses and mobility scooters)
- collections (such as stamps and medals).
However, policies vary according to the insurer so it's worth checking if the eligible items meet your needs. In some cases, exclusions may apply to particular categories, such as:
- jewellery, watches, smart watches and wearable technology
- laptops, tablets, mobile phones and their accessories
- musical instruments
- bicycles and 25km/h maximum speed e-bikes and e-scooters — except when being used for business, deliveries, racing or in competition
- tools of trade
- sporting equipment — except when in use.
Your broker can help you navigate the options on offer.
Taking out portable contents cover? What to do first
If you decide to top up your home and contents insurance with portable contents cover your insurer will want to see some proof of value. This could take the form of:
- receipts for purchase
- expert valuations
- photographs of the items in question
- serial numbers from equipment.
Many items such as artworks increase in value over time so it's important to review the replacement cost of your precious possessions and get valuations updated regularly.
These records are useful if you have to report a theft to the police and also provide your insurer with evidence for establishing the replacement value of the insured items.
How Gallagher can help
Not all portable contents cover policies are the same, so it's helpful to have a broker's input on the coverage that will meet your needs.
At Gallagher our specialist brokers have a thorough knowledge of the policies on offer so we are well placed to find the most suitable portable contents insurance options for you.
