Why is under-insuring bad?
Under-insuring means you won’t have enough cover to replace all the items under your policy. You might pay a lower insurance premium but, ultimately, not having the right level of cover could result in your insurance provider limiting a pay-out if the worst happens.
High net worth homes are most at risk of being under-insured. In fact, it’s estimated that 75% of high net worth homes in the UK don’t have adequate cover. Most of us simply don’t include the things we take for granted – carpets, rugs, curtains and everything in the attic we don’t use.
If you’re not sure how much cover you need, it may be worth contacting a professional valuer for advice.