You are here: Home - Insurance - News -

Is your contents insurance up-to-date? Many underestimating the value of home items

Written by: Adam Lewis
Homeowners and renters in the UK could be undervaluing the contents of their home by nearly £100bn according to new research.

Admiral Home Insurance surveyed 1,000 people in the UK, asking them to estimate the value of all their home contents. The average figure cam out at £22,267, which was more than £20,000 below the average contents value of £43,629.

Across the UK, Admiral worked out this equates to a total of £104bn worth of contents that could be undervalued. This is despite the fact that over one third (33%) of those asked said their homes at risk of either flooding or burglary.

Meanwhile over three-quarters of those surveyed who owned antique or vintage items said they have never had them valued, meaning their possessions could be under-covered.

Contents are defined as everything from a wardrobe of clothes, to pots and pans, to any gadgets owned. They also include carpets and curtains, which Admiral said are easy to underestimate.

As such while two-thirds of respondents said they typically update their contents insurance on an annual basis, one in nine said they had never updated it as they didn’t think they needed to increase their insurance level on a regular basis.

“It’s important that homeowners or renters provide a correct estimate for their contents, otherwise they could end up without enough cover should they have to make a claim,” says Noel Summerfield, head of household at Admiral.

“The value of most items can be searched on the internet, but antiques or jewellery should be valued by a professional before being added to your policy,” he adds.

Summerfield also advised ensuring the total value of contents remains up-to-date. “While most home insurance policies increase cover to recognise inflation, people often forget to add new purchased items, such as an engagement ring or a new television,” he says.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Millions under-protected for critical illness – Scottish Widows

Millions of people are failing to protect themselves financially in case of illness, according to research from Scottish Widows.