Holidaymakers are being urged to make “one simple check” before they set off on their summer getaway, which could pay off if something happens to their belongings.
Financial information business Defaqto said some holidaymakers could already have some cover tucked away in their home insurance policy – so people may want to check the terms and conditions of both their home and travel insurance.
It said people may assume that only travel insurance covers their belongings overseas.
But its analysis indicated that, if someone has opted to include personal possessions cover, 95% of home insurance products it looked at provide worldwide cover as standard for possessions and valuables away from home.
Defaqto said that in some cases these may also offer higher limits and potentially better payouts than travel insurance.
However, Defaqto also said that travel insurance remains essential.
Holidaymakers could find travel insurance vital in situations such as medical emergencies, which can cost many thousands of pounds, as well as cancellations.
Travel insurance also often includes cover for delayed baggage, allowing travellers to buy emergency essentials while waiting for luggage to arrive.
People should also bear in mind that not all home insurance products automatically include accidental damage for items away from home, and any claim made could affect future premiums or no-claims discounts for years afterwards, Defaqto warned.
The trick is to understand how home and travel insurance may overlap if a claim is needed, it said.
It suggested that people should check what their insurance product classes as “valuable items”.
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Data from the star ratings company indicated that more than 50% of travel insurance products limit payouts to less than £350 per item.
However, home insurance products often provide higher single item limits for valuables away from home, with £2,000 being the most common limit available, Defaqto said.
Policies may allow people the ability to tailor amounts to suit their needs and make sure they have sufficient cover.
Defaqto also said the majority (81%) of home insurance products include mobile phone cover as standard within personal possessions cover and almost eight in 10 (76%) products do not deduct an amount for clothing because of wear and tear, regardless of age.
The way that insurance excesses (the amount the customer must put towards a claim) are applied can also vary, Defaqto said.
It said that home insurance excesses are often applied per incident, while some travel insurance policies may charge excesses by “per person, per section” meaning multiple excesses could be charged.
Nearly two-thirds (64%) of travel insurance products looked at by Defaqto apply excesses in this way.
It analysed its database on May 8.
Angela Pilley, an insurance expert at Defaqto, said: “Many people may not realise that they already have or can get cover under their home insurance for personal possessions while away from home, including cover when travelling abroad.
“Before travelling, it’s worth checking both your home and travel insurance carefully to understand which product gives you the protection you actually need. Some home insurance products may offer higher limits for valuables and gadgets.
“Understanding single-item limits and excesses can make a huge difference if something goes wrong while you’re away.”
Here are some suggestions from Defaqto for holidaymakers when checking their insurance policies:
1. Check whether you already have cover for baggage and valuables through another insurance product.
2. Make sure single-item limits are high enough for gadgets, jewellery or designer items.
3. Understand how excesses work – the amount of money paid by the customer when making a claim.
4. Check you are covered for the countries you are visiting and for the full duration of your trip.
5. Make sure accidental damage is included if you want protection for drops, spills or breakages.
6. Double check cover for phones, tablets and other gadgets before travelling.
