27th March 2017

What is a Single Article Limit on a Home Insurance Policy?

Our Private Clients team are often asked about the single article limits on high value home insurance policies.

These single article limits can cause confusion and that’s where Lark can help. A high value home insurance policy will have various sections. Each of these sections, except usually buildings and contents, will have a single article limit. Usually, but not always, pictures/paintings, antiques, books, rugs, gold and silver will have one limit and jewellery and watches another, lower, limit.

Any item over the respective single article limit must be specified, that is, specifically noted along with its value on the insurance schedule. This could be one item, or a pair or set of items such as a set of dining chairs.

The confusion arises as sometimes clients incorrectly presume that when they purchase a new item, they do not need to add it to the policy if it falls under the single article limit. This is incorrect.

A £5,000 necklace for example, would not need to be individually specified on a policy that has a £10,000 single article limit for jewellery and watches. Nevertheless, it still needs to be insured. In this case, we’d increase the unspecified jewellery and watches figure by £5,000.

JUST BECAUSE AN ITEM FALLS BELOW THE SINGLE ARTICLE LIMIT, DOESN’T MEAN THAT THE POLICY DOESN'T NEED TO BE AMENDED.

The better high-net and mid-net-worth policies have higher single article limits. A high single article limit gives you more flexibility. In the event of a claim you are not limited to a figure (which in the case of jewellery is often higher) and you don’t need to produce a valuation for every small piece of jewellery or art you purchase.

A high single article limit gives you more flexibility.

Single article limits on the policies that Lark deal with can range up to £100,000. Check your policy and if you’re hampered by low single article limits, call us for a chat.

 


As an example, Hiscox 606’s single article limits are as follows:

  • Fine Art, including antiques, paintings, rugs, porcelain, stamps: £50,000
  • Jewellery and Watches: 25,000