Vacationers urged to check important information to save money

Financial experts have advised that making important “easy checks” could save holidaymakers money and better protect their belongings this summer.

Financial information firm DeFact is urging travelers to scrutinize the terms of both their home and travel insurance, highlighting that many people may already have overseas personal effects cover within their existing home insurance policy.

This is because many people mistakenly believe that only dedicated travel insurance can protect items being taken abroad.

However, Defaqto’s analysis reveals that for those with personal property cover, a significant 95% of home insurance products offer worldwide protection as standard for valuables and possessions taken outside the home. These home insurance policies often have higher single-item limits and may also offer better payouts compared to typical travel insurance products.

Nevertheless, Defaqto stresses that comprehensive travel insurance is still absolutely essential. This is essential in the event of an unexpected medical emergency or trip cancellation, which can cost you thousands of pounds. Additionally, travel insurance often covers baggage delays, allowing travelers to purchase immediate necessities while waiting for their luggage.

Travelers should be aware that not all home insurance policies automatically cover accidental damage to goods on the go, and making a claim could impact future premiums and no-claims discounts for several years, Defacto warned.

The key, the company says, is to understand that home and travel insurance can overlap if a claim is needed. We advise customers to check how ‘valuables’ are defined in each insurance product.

Data from Star Ratings Company shows that more than 50% of travel insurance products limit payouts to less than £350 per item. In contrast, DeFact pointed out that home insurance policies often have much higher limits for individual items for valuables removed from the home, with the most common maximum limit being £2,000.

Many policies also allow individuals to adjust these amounts to ensure adequate coverage for their specific needs.

DeFact also highlighted that the majority of home insurance products (81%) include mobile phone coverage as standard for personal effects, and nearly eight in 10 (76%) do not have a deduction for wear and tear on clothing, regardless of age.

The application of insurance excesses (the amount customers contribute toward insurance claims) can also vary widely, Defaqto explained.

Home insurance excess charges are typically applied on a per-incident basis, but some travel insurance policies may charge on a “per person, per section” basis, potentially resulting in multiple excess charges. Almost two-thirds (64%) of the travel insurance products analyzed by Defaqto use this latter method. This analysis was conducted on May 8th.

Angela Pirie, insurance expert at Defaqto, said: “Many people may not be aware that they already have, or are entitled to, home insurance for their personal belongings while away, including cover when traveling abroad. Check both your home insurance and travel insurance carefully before traveling. , it’s worth understanding which products will actually give you the cover you need. Some home insurance products may have higher limits for valuables and gadgets, so understanding single item limits and excesses can make a big difference if something goes wrong during your trip. Away. ”

To help vacationers understand their policies, Defaqto offers the following key suggestions: