Please Explain How Home Contents Insurance Works: Specified Contents and Personal Effects

eckorock on 03/12/2022 - 16:08

What is the purpose of adding specific items to your home insurance cover?

e.g. Contents insured for $45k
Contents excess = $500

No Specified Contents
No Unspecified Personal Effects
No Specified Personal Effects
No Accidental Damage

If I specify an item, e.g. "LG 4K TV worth $xxx" , "Necklace worth $xxx" etc , what's the benefit? It just seems to make the annual premium increase.

If the TV or necklace got stolen or damaged, wouldn't it be covered under the general contents insurance anyway?

Financial Home Insurance Insurance

Comments

  • jizmo on 03/12/2022 - 16:28
    -2

    Yeah but if the place burns down you keep the necklace and the 45K.
    If you are robbed of everything you get 45K and have to go rebuy the necklace from the hock shop across from Ice addict alley way

  • SBOB on 03/12/2022 - 16:40
    +8

    Some categories of items may also have an upper limit unless specifically defined as a listed item.
    Eg they may only cover generic jewellery items up to $x, so something worth over that, not explicitly listed in your policy as a specified item, would only be covered up to $x if claimed.

  • AndyC1 on 03/12/2022 - 16:50
    +5

    You need to read the PDS to see what is covered out not and to what amount.

    Be aware that you will not get the full amount, but what the insurance company can buy it at (usually wholesale) and it's specified in the fine print somewhere in the PDS and most people will miss it. I know this from getting a payout for shed contents and the insurance company Bunnings prices were about 10% to 15% lower than retail and I asked and they get a trade/wholesale discount and this is the price they give on a payout.

  • Gunnar on 03/12/2022 - 18:28

    As above. Read your PDS because that will contain the limits of each category that your policy will payout. Each policy is different so you need to read your PDS

    Jewelry is one of those items which will have a cap. If you know you have more than the cap then you will need to increase it.

    For example I have stuff that is worth more than my typical policy payout so I have had to up my jewelry content in my policy to cover it

  • eckorock on 03/12/2022 - 18:37
    +1

    According to the PDS
    Specified and unspecified "personal effects" is designed to provide you with insurance cover for the items when you are AWAY from your house.

    The specified contents is as you guys mentioned above, looks like it's to cover you for individual items above the limit eg $2000 for jewellery

    • jizmo on 03/12/2022 - 22:58
      -1

      Yeah so if the place gets hit. Junkies smash the door and go for the bed side tables and bathroom then run.
      Theres no money in Tv's it's all about gold diamonds and drugs.
      Front door is smashed 1K or 50K to fix the door pending on the house the rest is all junkies wanting gold and diamonds stolen that has to be recovered.
      Insurance companies don't care about damage it's about loss that makes them look.
      .

  • ShannonN on 03/12/2022 - 21:30
    +2

    Also best to photograph all personal stuff such as tools of trade, jewellery and high value items like computers etc. in case they indeed turn up at hock shops oh and serial numbers where possible

  • miwahni on 04/12/2022 - 03:05
    +2

    As eckorock mentioned, unspecified personal effects cover items that you may take with you. For example - leave your handbag/ backpack on the train, or have it stolen, and you could get replacement for handbag, wallet/purse, reading glasses, sunglasses etc that were in your bag. This can quickly add up.
    A lot of policies don't cover mobile phones though so check your wording.

Login or Join to leave a comment
Login Join