What is it?

Personal Effects Insurance, as it usually called, covers the policyholder against damage or loss of personal valuables carried or worn as they go about their business. Someone may ask; ‘But I already have Home Insurance covering my belongings, what’s the difference?’ Well, it is a good question. We will try to answer it in simple terms, with the hope it assists in drawing a line of distinction between the two types of cover. A simple look around your home will reveal two categories of possessions. There are those you generally use inside your house, without the need to carry them around when you go out, think your refrigerator or TV. Then there are those you ordinarily take with you when you leave your home if you are to derive full value from them, think your cell phone or camera. The former category is what you can generally have covered under your Home Insurance, while the latter requires another special type of cover, that is where Personal Effects Insurance comes in. It is worth noting that items in the latter category have one common denominator, which is portability. To an extent, it therefore is correct to think of Personal Effects Insurance as covering your portable valuables.

Typical valuables covered under Personal Effects Insurance

The list we give here is by no means exhaustive. It is only meant to give some context of what we are looking at when we talk about Personal Effects Insurance. Below is a short list with examples of items you should be thinking of when considering taking out Personal Effects Insurance:

  • Cell phones
  • Cameras
  • Laptops
  • iPads
  • Wrist watches
  • Jewellery
  • Suits

Why is Personal Effects Insurance important?

The insurer will help you cover losses arising from theft or damage to valuable portable assets such as those mentioned above. It allows you to recover easily from a situation that could otherwise have thrown you into financial difficulty trying to replace an important asset. Choosing the right insurer is key so that you are fully guided on the options available to you and all aspects you need to be aware of to enjoy peace of mind.

Disclaimer: This information is intended for general information purposes only and does not constitute legal advice.