A single insurance check could pay off if something happens to their belongings, experts at Defaqto said.
The financial information firm is urging holidaymakers to review both their home and travel insurance policies before heading abroad, as some may already have personal possessions cover included in their home insurance.
This coverage could protect items taken overseas, in some cases with higher limits and potentially better payouts than travel insurance.
Brits urged to check home and travel insurance before travel
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.”
Defaqto’s analysis found that 95% of home insurance products with personal possessions cover offer worldwide protection as standard.
However, the company warned that travel insurance remains essential.
Ms Pilley said: “Understanding single-item limits and excesses can make a huge difference if something goes wrong while you’re away.”
Travel insurance covers crucial risks such as medical emergencies and trip cancellations, which can lead to significant financial losses.
It also often includes cover for delayed baggage, allowing travellers to purchase essentials until their belongings arrive.
Defaqto cautioned that not all home insurance products automatically include accidental damage cover for items taken abroad, and claims on home insurance could affect future premiums or no-claims discounts.
The company advised holidaymakers to look closely at how their policies categorise “valuable items” and what limits apply.
According to Defaqto, more than half of travel insurance products cap single-item payouts under £350.
In contrast, home insurance products often provide higher single item limits for valuables away from home, with £2,000 being the most common limit available.
Policies may allow people the ability to tailor amounts to suit their needs, while the majority (81%) of home insurance products include mobile phone cover as standard within personal possessions cover.
Additionally, 76% do not deduct for wear and tear on clothing claims, regardless of the item’s age.
Excesses also differ between policy types, with home insurance excesses often applied per incident, while 64% of travel insurance policies impose excess charges “per person, per section.”
This could result in several excess payments for a single claim event.
Defaqto compiled its findings from its insurance database on May 8.
The trick is to understand how home and travel insurance may overlap if a claim is needed, it said.
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Here are some suggestions from Defaqto for holidaymakers when checking their insurance policies:
- Check whether you already have cover for baggage and valuables through another insurance product.
- Make sure single-item limits are high enough for gadgets, jewellery or designer items.
- Understand how excesses work – the amount of money paid by the customer when making a claim.
- Check you are covered for the countries you are visiting and for the full duration of your trip.
- Make sure accidental damage is included if you want protection for drops, spills or breakages.
- Double-check the cover for phones, tablets and other gadgets before travelling.
Do you have any holidays planned this year? Let us know in the comments.
