You’ve worked hard for your nice things. The art on your walls, the watch on your wrist, the jewellery you’ve collected over the years – these aren’t just possessions. They’re investments, memories, and sometimes family heirlooms passed down through generations.
But here’s the uncomfortable truth: there’s a good chance your high value contents insurance isn’t actually protecting them properly.
It’s not your fault. Insurance policies aren’t exactly bedtime reading material, and the industry hasn’t made it easy to understand what’s covered and what isn’t. But these gaps in coverage can cost you thousands – sometimes tens of thousands – when something goes wrong.
So let’s walk through the most common mistakes people make with their luxury items insurance. Because knowing what to avoid is half the battle.
Mistake #1: Assuming Your Standard Home Insurance Has You Covered
This is the big one. And it catches more people out than you’d think.
Standard home insurance policies typically have surprisingly low limits for valuable items. We’re talking caps of around £1,500 to £2,000 for things like jewellery, watches, or art. Got a engagement ring worth £8,000? Your policy might only pay out a fraction of that if it’s stolen.
The problem is that most people don’t read the fine print until they need to make a claim. By then, it’s too late.
High value contents insurance exists specifically because standard policies weren’t designed with luxury items in mind. If your contents include anything worth more than a few thousand pounds – whether that’s a vintage guitar collection, designer handbags, or fine art – you need to check your single item limits carefully.
Mistake #2: Failing to Update Your Valuations
Here’s a scenario that plays out more often than insurers would like to admit.
You bought a piece of art fifteen years ago for £3,000. You insured it for that amount. Makes sense, right? But fast forward to today, and that artist’s work has appreciated significantly. Your painting is now worth £15,000.
Guess how much your insurance will pay out if it’s damaged? That’s right – £3,000.
This is what’s known as underinsurance, and it’s one of the most expensive mistakes you can make. The value of your possessions doesn’t stay static. Antiques appreciate. Collectibles fluctuate with market demand. Even jewellery can increase in value as gold and gemstone prices rise.
The fix is simple but often overlooked: get your valuable items reappraised every few years and update your policy accordingly. Yes, it might increase your premium slightly. But it’s a lot cheaper than discovering you’re massively underinsured when you need to make a claim.
Mistake #3: Not Itemising Your Most Valuable Possessions
There’s a difference between having your contents covered as a lump sum and having specific items scheduled on your policy.
When you schedule an item – also called specified personal property coverage – you’re telling your insurer exactly what it is, what it’s worth, and that you want it covered to its full value. This typically means you’ll get full replacement cost if something happens, rather than a capped payout.
Items that should almost always be scheduled include:
- Fine jewellery and watches worth over £2,000
- Art and antiques
- Musical instrument collections
- Designer handbag collections
- Wine collections
- High-end electronics and camera equipment
If you’re not sure whether something needs to be itemised, have a look at our guide on what to itemise in the home. It might save you a nasty surprise down the line.
Mistake #4: Forgetting to Add New Purchases
Picture this: you’ve just treated yourself to a new Rolex to celebrate a milestone. It’s sitting proudly on your wrist. What’s not sitting anywhere is the updated insurance cover for it.
It seems obvious when you say it out loud, but forgetting to add newly acquired items to your policy is remarkably common. Life gets busy. The paperwork doesn’t feel urgent. And then something happens.
Some policies offer a grace period for new purchases – typically 30 to 90 days – but this isn’t universal. And even if your policy does have this feature, it usually comes with limits that might not cover high-value items adequately.
The golden rule? Update your policy within a week of any significant purchase. Keep the receipts, take photographs, and if it’s particularly valuable, get a professional appraisal before you add it to your cover.
Mistake #5: Choosing Price Over Protection
We all love a bargain. But when it comes to high value contents insurance, the cheapest option is rarely the best one.
Budget policies often come with restrictive exclusions that you won’t notice until you need them. They might not cover items taken outside the home. They might exclude certain types of damage. They might have excess amounts so high that smaller claims aren’t worth making.
When you’re insuring luxury items, it’s worth paying a bit more for comprehensive cover. Look for policies that include:
- Worldwide cover (so your jewellery is protected on holiday)
- Accidental damage (not just theft or fire)
- No single-item limits that leave you exposed
- Agreed value cover (so there’s no haggling at claim time)
It’s also worth checking our advice on getting the right cover to make sure you’re not leaving gaps in your protection.
Mistake #6: Assuming Everything Is Covered
Here’s something that surprises a lot of people: even comprehensive high value contents insurance doesn’t cover everything.
Floods and earthquakes are often excluded unless you specifically add them. Water damage from backed-up drains might not be covered. Gradual wear and tear definitely isn’t. And if your home is unoccupied for more than 30 days – common with second homes – your cover might be significantly reduced or voided entirely.
The only way to know what’s included and what isn’t is to actually read your policy documents. Yes, all of them. It’s tedious, but it’s better than finding out the hard way that your claim has been rejected.
If you’d rather have someone explain it in plain English, that’s where working with a specialist broker comes in handy. They can walk you through exactly what you’re covered for – and more importantly, what you’re not.
Mistake #7: Not Keeping Proper Records
Imagine your home is burgled tomorrow. Could you prove what was taken and what it was worth?
Without proper documentation, making a successful insurance claim becomes much harder. You need evidence of ownership, evidence of value, and ideally, evidence of condition.
This means:
- Keeping receipts and certificates of authenticity
- Taking clear photographs of valuable items (and storing them somewhere other than your home)
- Getting written appraisals for antiques, art, and jewellery
- Maintaining a detailed home inventory
It sounds like a lot of effort, but modern technology makes it easier than ever. There are apps specifically designed for home inventories. Even just walking through your house with your phone and recording a video of your contents is better than nothing.
Getting It Right
The good news? These mistakes are all avoidable. A bit of time spent reviewing your cover now could save you significant heartache later.
Start by pulling out your current policy and checking your single-item limits. Make a list of anything valuable that might exceed those limits. Get updated valuations for items you haven’t appraised recently. And if you’ve bought anything significant in the last year, make sure it’s been added to your cover.
If your current high value contents insurance isn’t up to scratch – or if you’re not sure whether it is – it might be time to talk to a specialist. Because when it comes to protecting the things you’ve worked hard for, “probably covered” isn’t good enough.
For more tips on making sure your home and contents are properly protected, have a look at our tips and advice when looking for house insurance.
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