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Homeowners warned over underinsurance risk

Homeowners warned over underinsurance risk

Category: Home insurance

Updated: 27/11/2012
First Published: 13/05/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Homeowners have been urged to make sure their home insurance policies are up to scratch after it was revealed almost two thirds of properties and their contents might be underinsured.

Up to 60% of high value homes are thought to have inadequate home and contents insurance policies because the true value of possessions has been underestimated.

Indeed, Hiscox, the insurer behind the research, said many homeowners were surprised when they discovered the real value of the things they own.

Many had not taken into consideration a number of items they had accumulated over the years or treasures that they had inherited.

Fluctuations in the value of certain items such as jewellery had also often not been taken into account, a considerable oversight given that the price of gold has soared so high in recent times.

Certain everyday items such as sofas and mirrors were also often found to be overlooked when people estimated how much their possessions should be insured for.

"After a while even the special things in your home can seem like part of the furniture," said Andrew Cheney, risk and valuation advisor at the insurer.

"This means that when it comes to estimating the value of your home contents, it can be easy to forget about items that actually hold reasonable value."

If you need to review your home insurance policy, or perhaps you're looking to purchase it for the first time, some excellent deals are available at present.

Up to 30% can be saved on Nationwide Home Insurance when buildings and contents cover is bought together – Nationwide customers get an extra 15% off too.

Significant savings can also be made just by using a comparison tool such as that offered by our partner beatthatQuote.com.

After you have completed one short form, they compare the premiums offered by their panel of insurers to find the best quote for you which can then be purchased online in minutes.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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