Underinsured home contents
It’s tempting to lower your insurance premium by underestimating what your home contents is worth but 26% of people who do have cover have underinsured their contents by (on average) £20,000. It’s easy to do and 39% of people have admitted to not taking into account family heirlooms that have been inherited such as jewellery, furniture and antiques.
Don’t let underinsured contents catch you out, it’s easy to forget items that you take for granted – carpets, curtains, light fittings, bedlinen and towels but these all add up. You can get a more accurate measure of what you own by using online contents calculators that some insurance providers have on their websites. You can also download apps that do the same. On average, British households contain:
- £4,000 of furniture
- £3,000 of electricals
- £2,000 of white goods
- Nearly £2,000 of clothes
- £1,800 of jewellery
- £2,700 of carpets, rugs, curtains and blinds
You should double check what exactly ‘contents’ means in the eyes of your insurance provider – does it include what’s in your shed for example? And if it does – are you covered for the full value of the contents?
Don’t forget items that you may have put away – just because you don’t use them everyday doesn’t mean they’re any less valuable (ironically you may have stored them because they’re too valuable). Check you’re covered for any single items that are worth a lot on their own – you might need to take out more specific insurance based on its value.
Your policy should also reflect what it would cost to replace your belongings at today’s prices – not what you paid for them five years ago. So when your policy comes up for renewal, always take stock of what you own, don’t be tempted to just renew your policy without really assessing your belongings. Why not compare the market for competitive home insurance quotes; because if you don’t value what you own, who will?