Protect your possessions from street crime

Might the combination of street crime and the increased value of personal possessions suggest the need for a bodyguard rather than insurance cover? Cost comparisons would indicate an emphatic "no" for the average person but much depends on attitude to risk, the value placed on personal safety and peace of mind, and one's tolerance level for inflicted violence.

If you're wearing £5,000 worth of bling (jewellery), carrying a mobile phone or two, plus iPod, lap top, digital camera etc., packed into a conveniently snatchable Gucci handbag, insurance cover in event of theft may not be sufficient consolation. But the cost of hiring protection, even if it's the cheapest minder from the local pub who fits the "six feet six and wide as a beer truck" mould, is still likely to be prohibitive by comparison. It really depends on what valuables you're carrying and where you're travelling.

Despite lurid media headlines, street crime, or robbery as the Home Office terms it, is currently decreasing. "Mugging", where violence is used or threatened, and "snatch theft" (no threat of force) are the two types of robbery recognised; of the 101,195 robberies recorded in 2003/4, 90% involved the separation of person from property. The other 10% were robberies of business property.

Street crime incidence was rising steadily during the late 1990s but according to the Home Office is now coming down since the start of the Street Crime Initiative in April 2002. It says the incidence rate fell by 12% between 2004 and last year. Many may find the figure hard to believe when, for example, there were still over 710,000 mobile phones stolen during 2005.

Taking out insurance against loss of personal property shouldn't be viewed as the "sorted" solution. Just as important is being aware of your surroundings and keeping valuables hidden. Don't flash the Rolex, talk on your mobile or sport mink-lined headphones in a busy shopping mall for instance. Note that some insurers may even refuse to pay out if they believe adequate care and vigilance were not taken.

Registering your phone free of charge at Immobilise will help the police return it when it does get stolen as a result of your flamboyant behaviour. Most basic home contents insurance policies have a limit on personal possession cover, which can vary anywhere between £1,000 and £20,000.

What contents insurance can offer you

A listing of all specific items is required by some insurers whilst others just want information on items worth more than, say, £1,500. Check the level of cover against the premium; some companies will require an additional premium to insure unspecified possessions against all possible risk. Recently reported examples of annual premiums for £3,500 worth of cover for unspecified items away from the home range from £173 (Liverpool Victoria) to £388 (Endsleigh).

It is also worth checking whether certain possessions are covered on other insurance policies such as those for travel or vehicle. For instance one specialist car insurer offers cover of £300 for handbag theft from your car. Check also where cover might be excluded; for loss/theft on business trips or because you're insured via another policy. Consider a high net worth insurance policy for household contents and possessions. It will obviously be more expensive but usually gives worldwide protection, thus useful for someone with more than one home who is regularly moving personal items between properties.

Remember that a successful claim for property lost in a street crime incident will invariably result in increased future insurance premiums - galling if your carelessness and streetwise incompetence was a major factor in the robbery. Of course, if the assailant is waving a gun or wielding a knife, it's best to go quietly, maybe wishing you had hired that bodyguard.

Government statistics for England and Wales show that crimes involving firearms increased from 7,753 in 1996 to 24,094 in 2003/4 (they couldn't all have been bank heists); the respective figures for being knifed to death were 197 and 237. Law-abiding citizens are not allowed to arm themselves with tear gas, coshes, swordsticks or Colt Magnums. A personal alarm fitted to a key ring and which emits a 128 decibel shriek when activated is acceptable though, at a cost of around £6 plus batteries.

If you really do feel a professional bodyguard or minder is vital when traversing those mean streets, be prepared to stump up somewhere between £300 to £500 for a one-off return trip, according to Mike Faux, C.E., Bodyguard Division, Executive Group Holdings. It's a competitive market and the price charged ultimately depends on the risk factor, rated from 1 (vanity purposes) to 10 (high physical risk). But there would be a discount available for trips on a regular basis!

16 March 2006 © Moneyextra.com

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