Undervaluing Possessions - Home Insurance

Don't undervalue your possessions in a home insurance policy!

Surveys carried out by leading UK insurance companies' outline that UK homeowners are running the risk of not being able to replace their most valuable personal possessions by dramatically undervaluing their home contents.

One survey estimates that more than one third of the population underinsures the contents of their home, even though the fact that new technology such as iPods, PlayStations, flat screen TVs, and wardrobes full of designer clothes have become more common in the average household.

The cost of replacing the average contents of a UK family home has increased and some people do not take this into consideration or simply do not realise that they are not taking enough cover when renewing their home insurance policies. This can result in possessions not being replaced should a disaster such as a flood or fire occur.

Estimates that the average contents of a 2.4 children family home with three bedrooms could be worth as much as ?38,182. Undervaluing the contents of your home could leave you out of pocket for minimal contents insurance of between ?10,000 and ?15,000. To avoid being caught out with inadequate cover, here are some useful hints:

-  Home contents insurance covers everything from clothing, which can often add up to thousands of pounds alone, to jewellery, collectors' items, furniture and even the entire contents of food in fridges and cupboards in a kitchen.

-  Calculate how much it would cost to replace everything in your home (other than immovables, such as bathroom suites or fitted kitchens, which come under buildings insurance). Only then can you be sure that you have enough cover in the event of a disaster.

-  When it comes to jewellery or antiques, check with your home insurance company how often you should have cherished items valued, as you'll need to know this if you have to make a claim.

-  A piece of jewellery or painting may significantly rise in value over the years and you don't want to lose out.

-  Accidents don't just happen to other people and can be costly. Accidental damage cover insures you in the event of mishaps such as a tin of paint spilling over your new carpet.