Like millions of others, have you underestimated the value of your possessions?
20 Dec 2012
Making sure your home is insured for the right amount is very important.
Under insurance can lead to serious complications in the event of a claim and insurers may not pay the full value of your claim. However mundane the task may seem, spending a little time on assessing the value of your property and its contents could be well worth it - underinsuring our buildings and our contents could spell disaster should we need to make a claim.
Consider these facts:
- Only last year, Direct Line estimated that 6.8million UK householders had underinsured their contents by around 30%.
- The Wesleyan Assurance Society estimates that an average property is underinsured by 33% for home buildings insurance and by 24% for contents.
- The Children's Mutual estimates that, on average, 50% of those insured don't update their policy annually and therefore could be drastically under-insured.
However mundane the task may seem, spending a little time on assessing the value of your property and its contents could be well worth it - underinsuring our buildings and our contents could spell disaster should we need to make a claim.
So what can we do to make sure we're insured appropriately?
- Use a contents insurance policy calculator, you can download ours here, to calculate the value of items in each room of your home. It is worth spending time running through your home room by room.
- Revisit your valuation every time you renew your insurance - you may have acquired a new TV during the previous year, or your gold jewellery may have increased in value. An average working person's wardrobe can be worth £10,000.
- Most home insurance policies include cover for valuable items such as jewellery, watches and paintings. However, many policies require you to specify items over a certain value.
- Arrange for a surveyor to quote an accurate rebuild cost on which you can then base your buildings insurance cover. Rossborough offer just such a service here.
There are many reasons why we may be under-insured. Some of us are underinsured simply because we have underestimated the value of the contents of our home and this includes what's in the loft!
The Co-operative Bank discovered recently that the average home's attic is the storage place for contents worth over £2,800, while those surveyed estimated the value of their loft bound clutter at only £559 - a gross underestimation. It stands to reason that we may have forgotten what it is we have in our loft, but many people simply underestimate the value of the items which they use everyday - take a kitchen for example - the costs of the small appliances such as microwave, slow cooker, food processor, all start to add up.
Comparison site, Moneysupermarket, recently confirmed that the number of gold items being insured on home insurance policies has doubled over the past two years. However, it also found that the value of gold has in fact risen by 43% over the same period, whilst the average value of gold listed on policies has only crept up by 5.8%. If householders are simply reinsuring for the same value year on year, these items could be vastly underinsured.
One classic mistake is underinsuring the cost to have our homes rebuilt - householders often get this sum wrong and that's why Rossborough offers the service of a surveyor who can assess your property for a nominal fee. The surveyor will then be able to provide you with an actual rebuild cost. I've seen homeowners go through this process and find they've been underinsured - some by as much as half. Find out more about this service here.
Contact Rossborough for more information about how we can help make sure you have the right home insurance for your needs.