Insuring your treasured possessions on holiday is always the smart approach, but it's important to note that not all policies are created equal when it comes to covering your high-value belongings.
What most people fail to realise is that that sub-limits exists for each item. When comparing luggage cover levels, $10,000 limit might sound like plenty, however, you may only be able to claim a maximum of $750* per item. Now that’s not very much when you’re looking to replace a $6,000 engagement ring is it? So what are your options? Keep reading to find out.
*average per item sub-limit
Which insurers have the highest standard cover limits?
Doing your research can literally pay off in the case of luggage limit travel cover. Just like your travel budget, every insurer varies in their single item limit cover and protection for unspecified items can range from $740 to $1,500, whilst computers and tablets limits can sit between $1,000 and $6,000.
The following policies are top-of-the-range when it comes to standard luggage cover.
• Photography fiends will likely go with American Express for travel insurance. They cover up to $3,000 for cameras and photographic equipment, laptop computers and tablets. Their single item limit is $1,000.
• All products underwritten by Allianz Australia Insurance Limited Australia cap their single item limits off at $750. That includes insurers such as Virgin Money and Worldcare.
• Insure And Go will pay up to $3,000 for laptops, computers, cameras and mobile phones. Otherwise, they will cover for unspecified single items worth $750 in value.
• Citibank covers for $2,000 worth of video and electrical equipment and up to $1,000 for unspecified single items.
Need more? Insure your high-value items separately
If you are planning to travel with a sizable diamond ring or state-of-the-art camera equipment, it would be wise to pay an added premium to cover these high-cost items. Alternatively you could also look at insuring your valuables under your home and contents policy. Before doing so, check that you are able to travel with the insured items and that they would be covered when you’re away from home.
Lots of insurers allow you to register your high-value belongings for an additional fee. The following details the high-value items cover available from various insurers within the market.
Additional high value cover available to buy per item
Total high value cover available
Additional premium cost per $1k item value
|No Worries Insurance||$5,000||$10,000 per person, $20,000 per trip||$27.30/$1,000|
|Simply Travel Insurance||$5,000||$5,000||$40/$1,000|
|Southern Cross Travel Insurance||$10,000||$15,000||$40/$2,000|
|Travel Insurance Direct||$4,000||$10,000||$40/$1,000|
|Travel Insurance Saver|
*Prices accurate at time of writing Dec 2016.
High-value items and depreciation
Did you know that insuring your exxy items separately means no depreciation applies in most cases, how's that for convenience!
What wouldn’t be covered?
It’s worth noting that travel insurance companies won’t pay out your claim if you are deemed to be negligent or acting irresponsibly with your belongings. The following are some situations you will not be covered for on holidays:
• Unattended belongings: Insurers can reject your claim for items that you do not properly attend or look after.
• Unreported items: Most policies will maintain that it is your responsibility to report theft or loss to the relevant authority (and your travel insurance provider) within 24 hours.
• Mobile phones: Some insurance companies will not pay out a claim relating to a mobile phone (or device with phone capabilities) if you are unable to supply the IMEI (International Mobile Equipment Identity).
• Items with no proof of purchase: Without an original receipt to prove your purchase, your claim might be rejected. Something to bear in mind is that photocopied, faxed or scanned documents may not be accepted.
• Belongings left unattended in a vehicle: Goods such as mobile phones, computer equipment, or jewellery may not be covered if left unattended (unless locked away in a safe compartment) in a motor vehicle.
• When alcohol or drugs are a contributing factor: If you were under the influence of drugs or alcohol when your belongings went missing, your claim may not be paid out.
Planning on packing an expensive item on your trip? If your valuables do go missing, a decent amount of damage control can streamline your claiming process.
• DO: have hard copy proof of your valuable items. A receipt can make all the difference between a paid claim and one that’s rejected. Be sure to check whether your insurer will accept a valuation certificate for jewellery and if so, get them to send it to you in writing.
• DO: double check the total price of your packed luggage contents before you leave. If the value is greater than that of your insurance policy, call them up and let know before you leave.
• DO: have a chat with your travel insurance company if you have any doubts. Questioning the sense in taking a pair of $5,000 sapphire earrings away with you? Talk to your providers to clarify any confusion.
Losing or having a prized belongings stolen whilst on holidays can be a common, yet gut-wrenching experience... especially so if they are not covered to their full value!
Even the safest travellers can lose their belongings, but theft or loss shouldn’t steal all the fun out of your trip. Take the time to find a decent travel insurance policy that provides enough cover (and peace of mind) for your high value items so you can relax and enjoy your holiday. Compare policies today!