A new study by MoneySuperMarket has measured exactly how much people underinsure the contents of their homes, finding the figure to be a whopping £20,000.
As reported by
Your Mortgage, MoneySuperMarket calculated the figure by looking at the difference between what homeowners and insurance value belongings at. Homeowners usually value the contents of their home as £35,000, but experts suggest the average three-bedroom family home has £55,000 worth of items, making for a £20,000 difference.
Insurance expert at MoneySuperMarket Kevin Pratt said not undervaluing the contents of a home is crucial to avoid the nasty surprise of not being covered.
“As well as making sure they have enough overall contents cover, people should also ensure they itemise specific high value items on their policy – insurers want detail on any possessions likely to be worth £1,000 or more,” said Pratt
The research revealed 34% of the valuables listed on UK polices were laptop computers. Bikes came in second, making up 22.8% of valuables listed. Jewellery and watches made up 22.4% and 7% of listed valuables respectively.
Pratt also said the location of where items are stored can make a difference in whether they can be claimed under a home contents policy, which may come as a surprise to some customers.
“Many policyholders are under the impression items kept in their garage or shed are included in their main home contents policy. However, if there is no connecting door to access through the main house, garages and sheds will usually be classified as ‘out-buildings’ and there will be a separate contents limit on most policies, as with items kept in the garden,” said Pratt.
“You should also check the terms of cover for items in the garden or garage. For example, a bike might be insured while it’s in your garden, but only if it’s secured to an immovable object.”
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