Does your insurance cover treats bought in lockdown?

SPENDING more time at home has led to a dramatic rise in online shopping as households seek to banish lockdown boredom. Sales of high-value items such as smart TVs, laptops and games consoles have jumped, as have purchases of home gym equipment and bikes.

But experts are urging consumers to make sure any new items are covered under their home contents insurance policy – and to check the small print for any exclusions.

Simon Stanney, a director at insurer SunLife, says: ‘ Insuring your home and its contents for the right amount is crucial to ensure that any claim you make will be paid in full. If your insurer discovers you’ve said your possessions are worth less than their true value – even if accidentally – you will receive less money or may not get a payout at all.’

Mark Gordon, chief executive of comparison website Compare by Review, says: ‘Items such as bikes are not always included in standard home contents policies, so if you’re one of the many to have purchased a bike during lockdown, it’s key to check it’s covered.’

In addition, policyholders should confirm whether new purchases are worth more than the single item limit. This is the maximum amount that can be claimed on a home insurance policy for any one item.

Stanney says: ‘Single item limits are usually between £1,000 and £2,000, so if you have recently purchased something of significant value, perhaps a TV, it may need to be named separately on the policy.’

The recent warm weather has also contributed to a rise in sales of garden furniture and equipment such as hot tubs, barbecues, and fire pits. But insurers are warning households to take care when cooking outside or even burning garden waste after seeing twice as many claims for accidental fire damage compared with last year. Dan Simson, head of home insurance at Direct Line, says: ‘We’ve seen numerous claims for damage to fences and sheds from fires which have got out of control in neighbours’ gardens.’

Many people have also used the time at home to revamp their shed, with nearly half spending as much as £500 or more on improvements, according to Co-op Insurance. Shed transformations include reading rooms, pubs and offices. Yet research by financial comparison website MoneySuperMarket shows more than half of consumers have never insured any of their outdoor possessions, potentially leaving £32.9 billion worth of goods nationwide at risk of loss from theft.

Those who do have insurance are at risk of invalidating it by forgetting to lock valuable items away at the end of the day. MoneySuperMarket’s Kate Devine says: ‘In the summer months, there’s the temptation to leave items of value outside overnight or keep your shed unlocked. But this will leave you open to risk of burglary and could void your home insurance cover if you need to make a claim.’

Most home policies include a small amount of cover for garden items, but it is important to check the small print. There may be separate limits for items left outside and for equipment locked away in a shed or outbuilding, while high-end equipment in the garden may need specialist garden insurance.

Extra time at home has also resulted in more people carrying out DIY, increasing the risk of accidental damage. Policyholders are advised to check if their home contents insurance includes cover for accidental damage as standard.

Finally, now that lockdown restrictions have eased, consumers should also ensure personal possessions are covered if taken outside the home. Danny Butler, of finance comparison website Finder, says: ‘If necessary, purchase additional cover for high-value items or look at specialist cover, such as gadget insurance.’