Holidaymakers are being urged to make one simple check before their summer getaway, which could pay off if something happens to their belongings. Financial information business Defaqto said some holidaymakers may already have some insurance cover they are not aware of.
Home Insurance May Cover Overseas Belongings
Defaqto is urging holidaymakers to check the terms and conditions of both their home and travel insurance policies. People may assume that only travel insurance covers their belongings overseas. However, Defaqto's analysis indicated that if someone has opted to include personal possessions cover, 95% of home insurance products provide worldwide cover as standard for possessions and valuables away from home.
In some cases, these policies may also offer higher limits and potentially better payouts than travel insurance. For instance, home insurance often provides higher single item limits for valuables away from home, with £2,000 being the most common limit available. In contrast, more than 50% of travel insurance products limit payouts to less than £350 per item.
Travel Insurance Remains Essential
Despite this, Defaqto emphasised that travel insurance remains essential. Holidaymakers could find travel insurance vital in situations such as medical emergencies, which can cost many thousands of pounds, as well as cancellations. Travel insurance also often includes cover for delayed baggage, allowing travellers to buy emergency essentials while waiting for luggage to arrive.
Defaqto warned that not all home insurance products automatically include accidental damage for items away from home, and any claim made could affect future premiums or no-claims discounts for years afterwards.
Understanding Overlaps and Excesses
The key is to understand how home and travel insurance may overlap if a claim is needed. Defaqto suggested that people should check what their insurance product classifies as valuable items. The way insurance excesses are applied can also vary. Home insurance excesses are often applied per incident, while some travel insurance policies may charge excesses per person, per section, meaning multiple excesses could be charged. Nearly two-thirds (64%) of travel insurance products apply excesses in this way.
Defaqto also noted that the majority (81%) of home insurance products include mobile phone cover as standard within personal possessions cover, and almost eight in 10 (76%) products do not deduct an amount for clothing because of wear and tear, regardless of age.
Tips for Holidaymakers
Angela Pilley, an insurance expert at Defaqto, said: Many people may not realise that they already have or can get cover under their home insurance for personal possessions while away from home, including cover when travelling abroad. Before travelling, it is worth checking both your home and travel insurance carefully to understand which product gives you the protection you actually need. Some home insurance products may offer higher limits for valuables and gadgets. Understanding single-item limits and excesses can make a huge difference if something goes wrong while you are away.
Defaqto offered the following suggestions for holidaymakers when checking their insurance policies:
- Check whether you already have cover for baggage and valuables through another insurance product.
- Make sure single-item limits are high enough for gadgets, jewellery or designer items.
- Understand how excesses work – the amount of money paid by the customer when making a claim.
- Check you are covered for the countries you are visiting and for the full duration of your trip.
- Make sure accidental damage is included if you want protection for drops, spills or breakages.
- Double check cover for phones, tablets and other gadgets before travelling.
