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