Hifi Insurance

Presumably not until he’s had a big drink after last going walkies

Yes, that was said in jest.

However, the bit about heavy equipment is not entirely incorrect. Would take 2-3 people to lift one of my speakers, and that’s with a bit of equipment (ropes etc). Having said that, the house and contents are insured for fire and other disasters, though if such a thing would happen, the last thing I’d probably miss is the hifi as it is ultimately replaceable (at huge cost, granted, but still replaceable).

First trip out in a morning and I swear he could fill a bath…
But on a serious note, a monitored burglar alarm wouldn’t save much in the event of fire, and in my view is no deterrent to scumbag thieves, if they want to get in they will - I just try to make sure they will have a hard, noisy, messy time doing so.
Another tip if you have it installed - the very first thing a prepared burglar will target upon gaining entry is the CCTV hard drive, so keep it in the most obscure place you can think of…

I’m sure that the biggest variable in domestic insurance is how much the insurer can get away with. My parents’ joint buildings and contents cover had swelled to £750 before I took over financial management and renewed with a very slightly downgraded policy at £107…

Self-insurance is worth considering when premiums are getting high. I’m very circumspect about claiming for anything under a couple of grand as the insurance industry will make damn sure you pay that back in premiums, although perhaps not quite as damn sure as in motor insurance.

But you need to be careful that you are covered against substantial or total loss. By all means, reduce the premium by increasing the ‘excess’ to whatever level you are comfortable with, but savings under this head are quite modest, however worthwhile.

Agreed, that’s why I have buildings insurance, because a total loss would be catastrophic however vanishingly small the risk (how many people of the tens of millions of property owners in the UK ever suffer a total loss?). But insurance for say £10-15k worth of hi-fi? If the premiums are £250 per annum, and the probability of a total loss over 50 years is 100% (which it wouldn’t be) it’s a wash.

My Hi Fi is a multiple of that £15k, and when all the rest of house contents are reckoned, I could not take the risk of a total loss, however remote. Bear in mind that if you only insure for 50% of house contents and you suffer a total loss, you will, in effect, receive only 25% in the event of a claim.

Not sure where that comes from? If you are under-insured, say only for 50% of gross value, they pay 50% of each item - whether your loss is £15k or £150k.

As for total loss, that thankfully is extremely rare - but best part of 100% of high value items (whether jewellery or hifi) is much more likely a target in burglary, especially a planned burglary as opposed to opportunistic.

The principle is the ‘averaging clause’. If the contents are only insured for half the total value, then in the event of a total loss (or any loss) you will only receive half of the insured value, by reference to the total value of the contents compared to the value which you have insured. Contents worth £100k insured at £50k will give a total insurance payout of £25k for a total loss.

I don’t get that - it seems to be multiplying by 50% twice. It’s not what happened to me: admittedly many years ago now, and the claim was small (equivalent to maybe £2-3k in today’s money): we were underinsured by about 25%, so they coughed up only 75% of the value of the lost item (less the XS).

Insurance is not a bet about what loss you may incur. It is about covering the actual value of your contents, (or your home). If you pay a premium half of what you should have paid, the insurance company will pay you half of the value upon which you have paid a premium. Half x Half = 25%.
Unfortunately, too many find out too late, but it can be devastating. Rule 1, never underinsure for either home or contents.

My understanding, reinforced by personal claim experience, is that if you paid for half the true value, they pay back for only half (meaning half for any item). On what source of information are you basing your 50% of 50% = 25% payout?

Google ‘insurance average clause’. The principle is fundamental to insurance, although perhaps not always enforced in small claims, but if you ever have to press the ‘big button ‘, it could be catastrophic. Never go for a short term cash advantage without all the facts…

Google ‘insurance average clause’. The principle is fundamental to insurance, although perhaps not always enforced in small claims, but if you ever have to press the ‘big button ‘, it could be catastrophic. Never confuse apparent short term saving with

Ok, I Googled “insurance average clause”, and found a “formula” for calculation.
Formula: Claim = Loss Suffered x Insured Value/Total Cost.
So, if insurance vale say 50k but actual total cost = 100k, ans an item worth 20k lost, claim = 20k x 50/100 = 10k. That is what I said, not 25% of value as you said. Where do you get your 50% of 50%?

Sorry, my mistake. My point is that if you under insure, you will not receive the full value of any loss. So if you lose 10k and you have 50k insurance on 100k contents, you will only receive 5k of your loss.
For me, and for most, the consequences of under-insuring in a total loss situation, however unlikely, would be very serious. I sleep easier knowing I’m fully covered.

I fully agree!

Well, my home insurance is now due, and having done some research I can confirm the following rather outstanding different quotes, for essentially the same level of cover (building and contents):-
M&S renewal: £752, Premier unlimited buildings & contents, valuables also unlimited (standard). General XS £50
Hiscox: £1566, unlimited buildings £170k contents, valuables £38k. General XS £500
Aviva: £408, Premium unlimited buildings & contents, valuables £38k, General XS £100.

This year has shown an absolutely huge range of prices, far greater than I have found before.

I think if you buy new , they keep a note of it long past the time when the warranty runs out

I have unlimited cover for buildings and contents including accidental cover for 225 quid. Also covers emergency callout etc