Seasonal increases offered by some contents insurance policies don’t cover new possessions into the New Year, according to Halifax Home Insurance.

The lender has warned consumers who have increased their household contents cover for the Christmas period, to bear in mind that they may be underinsured once the seasonal period is over. David Rochester, senior underwriter for Halifax Home Insurance, said: “Although some insurers will increase contents cover over Christmas, this still leaves the problem of re-evaluating your contents in the New Year. It’s vital for people without unlimited cover to remember to update their insurer with any changes to their contents value and be aware that some insurers will penalise customers who underestimate the value of their belongings.”

He added: “With high-value items such as MP3 players and games consoles high on many people’s most-wanted lists this Christmas, presents could boost the value of home contents by hundreds or perhaps even thousands of pounds.”