What is personal possessions cover?

The cost of living continues to rise, and as such, it’s become more important than ever to protect the possessions we have with us when away from home. From mobile phones, smart watches, and laptops to sunglasses and even bikes – items like these can often cost a small fortune nowadays and replacing them isn’t always an option. When we take them out of our homes, we’re at risk of an extra expensive day out if they’re lost or stolen.  

The average UK household estimates the value of its possessions to be £58,210 in early 2025 – up from £42,180 in 2019 – a 38% rise. If you assume they’re safe inside and outside the home under your home insurance, you're not alone, but the truth is that without personal possessions cover, it’s unlikely that your items are covered. , but the truth is that without personal possessions cover, it’s unlikely that your items are covered.  

What is personal possessions cover? 

It’s an optional extra you can add to your contents or home insurance that protects items you wear or carry, whether in the UK or abroad. Think mobile phones, bicycles or e-bikes, tablets, cameras, credit cards, and even up to £1,000 in cash and £500 in unauthorised card use. You can also specify more expensive items, such as jewellery and watches, that are worth over £2,500 in your policy.  

Why this cover is more valuable than ever 

Rising theft of phones and wallets 

Recent insurance data reveals nearly two in five mobile phones stolen across Europe are taken in the UK, with London alone accounting for over 16% of incidents. Theft claims have increased by a staggering 425% since mid-2021, with the average claim amounting to around £1,200. 

Meanwhile, ‘theft from the person’ increased by 5% year-on-year in 2024, with some London boroughs seeing rises of over 100%. Let’s just say tucking your wallet or headphones away in a back pocket doesn’t cut it anymore!  

Tenants are particularly vulnerable 

Paymentshield surveys¹ reveal that only 46% of UK private tenants have contents insurance, down from 51% in 2023. Yet more than 60% of respondents value their belongings at over £5,000, with 25% saying they have over £25,000 worth. Is this a risk you’re willing to take? 

Common Mistakes to Avoid 

1. Over-insuring or guessing values – it’s tempting to ballpark how much your stuff is worth, but guessing can backfire. Unless you’re sure, you could end up overpaying or underclaiming when the time comes. 

2. Under-insuring or not insuring at all – shockingly, 9.3 million UK households have no contents insurance at all, meaning millions are vulnerable to loss, theft or damage without any financial protection. 

3. Not specifying high-value items – those worth over £2,500 (such as high-end jewellery, bikes, or designer bags) often need to be individually listed. Forget to do that, and your insurer might not pay out the full value if they’re stolen or damaged. 

How Paymentshield’s Cover Helps 

When personal possessions cover is added to a Home Insurance policy, it can cover: 

• Accidental loss or damage protection, inside and outside the home (UK and abroad) 

• Optional single item specification for items over £2,500 for full peace of mind 

• Coverage caps tied to contents limit — e.g., with a £75,000 contents limit, you can cover up to £22,500 for possessions away from home; increase to £100,000, and away from home cover can increase up to £30,000 

How To Make Sure You’re Covered 

• Catalogue everything — walk through each room in your house and take note of all your items 

• Save receipts and ask for valuations for expensive items like jewellery or mobile phones 

• Review and update your cover regularly, especially after buying new gadgets or upgrading bikes 

Your personal possessions are now worth more than ever – and so is the risk of losing them. Having adequate cover, especially while you're out and about with your tech or riding your bike, is no luxury—it’s peace of mind. 

If you’d like to include this optional extra with your policy, contact your financial adviser and they’ll be happy to help. 

¹All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1012 adults. Fieldwork was undertaken between 9th - 14th May 2025. The survey was carried out online.