When did you last walk around your house looking in cupboards to check your contents insurance is adequate?

Many UK households can leave themselves open to the risk of being underinsured as more often than not customers are influenced by price and convenience without considering the quality of cover on offer or the actual value of their possessions.

And unfortunately, they may not realise they are underinsured until they come to make a claim.

WHAT IS UNDERINSURANCE?

To be ‘underinsured’ means that the amount you’re covered for is less than the cost of rebuilding, replacing, or repairing. For example, if you had a
fire at your home, and your ‘sums insured’ is only £30,000, but the actual cost to replace your contents is £100,000 then you’re underinsured and the reality is your policy won’t pay out beyond £30,000, leaving you with a hefty bill.

DO YOU KNOW EXACTLY WHAT YOU OWN?

Try to take account of the true value of everything you own – both buildings and contents. If you’re unsure of the difference between the two, imagine your house could be lifted off the ground and tipped upside down. Everything that falls out is contents. The rest should be covered by buildings insurance. Also don’t forget about items such as artwork or jewellery that you might have inherited or purchased a long time ago – their value may have changed significantly. Or a new kitchen or bathroom that may have increased rebuilding costs for your property.

DON’T UNDERESTIMATE THE VALUE OF YOUR BELONGINGS

Take time to walk around your house and use the list below as a guide to the contents you need to be insured for. Remember, you should look at how much items are to replace from new as in the event of a claim you can get new for old cover. Exclusions may apply.