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Household Contents vs All Risks Insurance

Published on: 06 February 2014

Contents insurance does not necessarily cover your items you take with youWhether you live in a one bedroom bachelor pad or a mansion, your home is your castle. If your house burnt down today, could you afford to replace everything (including your wardrobe) tomorrow? If the answer is ‘no’, then you need to insure your household belongings against fire, theft, water, wind and storm damage. The same goes for stuff that you take with you when you leave your house.

With that said, there’s often a bit of confusion about the different policy covers as well as what is included or excluded. Here’s a breakdown that will help to keep you in loop.

Contents insurance

Contents insurance covers all personal belongings that are kept inside your house which are not fixed to the property, for example your furniture, jewellery, appliances and clothing. This type of insurance covers you for events such as theft, accidental damage or loss. 

Useful tip: There’s usually a limit on the value you can claim for any individual item. So you may need to list certain valuable items, such as jewellery or antiques separately on your contents policy.

All Risk insurance

All Risks Insurance (sometimes referred to as Portable Possessions Insurance), is additional cover for personal belongings that are usually worn or taken out of the home. This normally includes items such as: iPads, laptops, cameras, cell phones and prescription glasses. These portable items can be covered under your Contents Insurance policy, but you would not be covered if lost or stolen outside your home.

Scenario: If you have only have contents cover, your laptop is only covered if the loss happens inside your home. For additional, cover it needs to be specified under All Risks cover.

There are two types of All Risk Insurance options to choose from:

 Unspecified

This covers a variety of items that you wear or usually take out of the house that might change from day to day. Since it’s not practical to list each and every item, you can choose an overall value for unspecified items without having to list each one. There’s a maximum value each item is covered for.

Specified

This covers items valued at more than the individual maximum value per item for Unspecified All Risks, for example an engagement ring.  Each item you insured under this section is specifically listed and the value noted on your policy.

Review your policy regularly

Remember to keep updating your insurance policy to make sure that you are not under insured. It’s also important to ensure that items are insured for their replacement value. This is the cost of replacing my lost or damaged goods with new ones. After all, the point is to be able to replace the items should they be irretrievably lost or damaged.

As a client of MiWay you can update your policy online 24/7/365, whenever it’s convenient for you. Best of all, you can boost your rewards by simply managing your policy online.