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We Spend More Money In December
If you’re anything like the UK population then you may have just spent a small fortune in preparation for Christmas. According to a report by the Bank of England in 2020, the typical UK household spends 29% more in December than in any other month. The Evening Standard claims this is expected to rise to 65% in 2022.
Despite the increased spending, most people will not think to get in touch with their insurance broker to uplift cover for general contents, artwork, jewellery or watches. Let’s be honest, it’s just not something we think about.
But panic not!
Most High Value Home Insurance products will include cover for gifts, new purchases, new possessions or new acquisitions as standard, within their policy wording – even if you have not told them. Below we compare six of the most popular high value home products in the UK market, showing you what’s covered as your outgoings soar this Christmas.
The products we include are Hiscox 606, Ecclesiastical Private Client, Covea Executive Plus, Groves John Westrup (MunichRe), Zurich Private Client and Azur Home (soon to be Aviva).
Quick Reference Comparison Table
To get us going, let’s start with a user friendly reference guide – for a more detailed outlook then read the in-depth guide below.
| Insurer / MGA | Cover Given for Gifts, New Purchases, Possessions or Acquisitions | Must Notify the Insurer / MGA When of Increased Sums Insured |
|---|---|---|
| Groves John Westrup (MunichRe) | Auto cover up to £150,000 for gifts given. Or up to 25% of the contents, valuables, antiques and works of art sum insured for new items you have bought or been given but which you have not told them about yet. | Within 90 days of items acquired |
| Ecclesiastical Private Client | Auto cover for 30% of sums insured (up to £2,5mil for art and antiques or £250,000 for jewellery and watches) | Within 60 days of items acquired |
| Hiscox 606 | Auto cover for 25% of contents sum insured (up to £100,000) | At renewal of policy |
| Zurich Private Client | Auto cover for up to 25% of contents and valuables sum insured. | Within 60 days of items acquired |
| Covea Executive Plus | Auto cover for new purchases up to 25% of sum insured for the relevant section on the schedule. Gifts covered with no financial limit | Within 60 days of items acquired. For gifts, you’re covered one month prior to and following the event the gift is purchased for |
| Azur Home | 25% of the highest amount of contents cover (for general contents) or 25% of the total sum insured for the respective collections sum insured, as listed on your schedule | Within 90 days of items acquired |
In Depth Guide
Groves John Westrup (MunichRe) Home Policy
Groves John Westrup specifically mentions different levels of cover for gifts and new acquisitions in their policy wording but there is no definition of what is a gift or a new acquisition. The common understanding of an acquisition is an asset or object bought or obtained. Where they draw the line, who quite knows? But we shouldn’t be put off by this as the levels of cover offered is generous.
They will cover gifts up to £150,000 for gifts purchased during the period of insurance for weddings, anniversary, birthday, religious or other celebration gifts bought by you not yet given (or which have been bought for you) – but you need to tell them within 90 days of buying or having been given the item.
They will also cover up to 25% of the contents sum insured for new items you have bought or been given but, again, you must tell them within 90 days of acquisition.
Ecclesiastical Private Client Home Policy
Ecclesiastical, to their credit, do keep it simple in their policy wording and just include a section about new acquisitions. For new acquisitions of art and antiques and personal valuables you acquire during the period of insurance, Ecclesiastical will automatically provide cover for damage, provided you advise them within 60 days from the date of the purchase (and pay additional premiums, naturally). The most Ecclesiastical will pay for all claims in any one period of insurance for:
1. art and antiques is 30% of the total of the sum insured under this section or £2,500,000, whichever is the less;
2. personal valuables is 30% of the total of the sum insured under this section or £250,000, whichever is the less.
But be careful as Ecclesiastical explicitly communicate a warning if you fail to notify them. If you do not notify them within the timescale allowed, Ecclesiastical reserves the right not to insure the item(s) concerned.
Zurich Private Client Home Policy
Zurich Private Client. For general contents and valuables, Zurich will pay up to 25% of the sum insured at your home for loss or damage to your newly acquired contents. You must advise them of the acquisition within 60 days of the date of acquisition and pay the full additional premium from the date of acquisition. But be careful, Zurich explicitly state they reserve the right not to insure your newly acquired contents after the 60th day.
Zurich keep it simple to their credit. You know what is covered and it is written in easy to understand language! Well done Zurich.
Covea Executive Plus Home Policy
Covea, on their executive plus policy, like Groves John Westrup, split out gifts from new acquisitions. But again, they do not provide concrete definitions for each of these.
For gifts, they will pay for loss of or damage to contents, art and antiques purchased as gifts (other than gift vouchers) for a birthday, wedding, anniversary, religious or other event celebrated by you or your family for the period from one month before until one month after the event. Interestingly, Covea does not put a figure on the value of the gift – so splash out on your loved one with confidence! Just make sure to give it away quickly… otherwise you won’t be covered.
For new purchase contents, artwork, antiques, jewellery and watches, Covea will pay for loss of or damage to items that are newly purchased provided you inform them within 60 days of the purchase and pay any additional premium required. The maximum amount they will pay is 25% of the total amount you already have cover for within that section.
Azur Home Policy
Last, but not least, Azur Home. Azur refers to this cover as newly acquired items within their policy wording and I must be honest, their policy wording is the most difficult to interpret.
Azur will cover your newly acquired contents and collections for 25% of the highest amount of contents cover (for general contents) or 25% of the total sum insured for the respective collections sum insured, as listed on your schedule. As we all know, Azur offers 50% of buildings sum insured as cover for your general contents (IE, you have a £2mil rebuild value home, Azur will auto give you £1mil cover for general contents). Does this mean you’ll receive 25% of £1mil as auto cover for newly acquired items for general contents? I’m going to be honest, I’m not 100% sure and I am an insurance broker! You’re best bet is to speak to your broker.
But be careful, you must request cover for the newly acquired contents within 90 days after you acquire them and pay Azur the additional premium from the date acquired. Azur reserve the right, at their discretion, not to insure the newly acquired contents if cover has not been requested for such contents within 90 days.
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