Will Contents Insurance Cover My Possessions away from Home?
30 June 2009This depends on your plan. For the most part, contents insurance will only cover items while they are in your home. However, with a larger budget, you can purchase insurance plans that cover items while they are away from your home. This normally requires only an appraisal or proof of purchase of the item and can cover accidental damage, loss, theft, and more. This is extremely useful, for example, just to cover a single valuable item, such as a computer, if you don’t have manufacturers insurance on it.Unfortunately, however, this will increase the price of your insurance plan quite a bit. Obviously the risk to the insurance company that they will have to cover an item is far greater if you remove it from your home. There are far more chances that you will lose the item, it will be stolen, or accidentally damaged. In fact, this risk is so great that many insurance companies refuse to cover items when they are out of your home. However, you have to consider the benefit before you decide that the insurance will be too expensive to purchase. Obviously if the risk is great for the insurance company, it is also great for you. And if you are uninsured, you will just have to purchase another item, no matter how expensive it may be. I would strongly encourage anybody to cover a very expensive or important item if they plan to take it out of the home.
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