3 knowledgeable tricks to keep away from expensive dwelling contents insurance coverage mistake
Brits are relying on a ‘rough guess’ when valuing their home contents for insurance, a costly mistake that could mean a reduced payout when making a claim.
One in four Brits haven’t reviewed their insurance policy in two years(Image: Getty Images)
Almost half of Brits are relying on a ‘rough guess’ when it comes to insuring their home contents. Research discovered that 67% have never accurately valued items such as gadgets, bikes or jewellery – despite estimating their possessions are worth an average of £46,422.94.
Only 17% said they carefully calculate the value of their belongings before finalising their policy. What’s more, the survey of 2,000 adults showed that nearly a quarter (23%) haven’t reviewed their insurance policy in the last one or two years, while 31% haven’t updated their cover, despite making significant purchases within the last three years.
The cost-of-living seems to be impacting decisions, with 14% confessing they’ve lowered their level of cover to save money. However, 41% weren’t aware that underinsuring home contents could result in a reduced payout if they need to make a claim.
The research was commissioned by Go.Compare ahead of the bank holiday and half-term, as it warned how costly it can be to under- or overestimate the value of home contents.
Nathan Blackler, home insurance expert for the brand, said: “Spending a bit of time accurately assessing your contents helps ensure you have the right level of cover in place, so you’re properly protected without overpaying.
“It also means when homes are left empty for longer periods of time, homeowners can feel reassured – something that will be happening for many people across the country soon with school holidays right around the corner, and summer travel season about to ramp up.”
More than seven in 10 are uncertain whether their existing policy contains an ‘average clause’ – where compensation is cut if the policyholder is underinsured.Over half would also find it difficult to supply evidence of ownership for their possessions, with 27% doubtful they could ever replace everything should they lose it all.
The surveyed showed 26% would rely on a credit card to replace items, 55% would dip into their savings, and 14% said they would turn to family or friends.
Laptops or tablets, engagement or wedding rings, and bikes were the leading expensive items being overlooked in policies. Meanwhile curtains and blinds, flooring and clothes were considered the most frequently forgotten items to add to home insurance policies.
Nathan added: “Whether it’s going abroad or taking a staycation in the UK, homes can still be vulnerable when left unattended, from burglaries and stolen valuables to water leaks causing serious damage before they’re discovered.
“That’s why it’s so important to make sure you know what your belongings are really worth and that your insurance cover accurately reflects what you own before you go away.
“The last thing anyone wants is to come home from a holiday and discover they’re facing a major financial hit that isn’t fully covered.”
NATHAN’S THREE TOP TIPS FOR INSURING YOUR HOME CONTENTS
- Don’t rely on guesswork – Take the time to work out an accurate value helps you get the right cover at the right price.
- Review your cover regularly – Contents values can change over time so regular reviews can help make sure your policy keeps pace
- Use tools to get it right – Using a home contents calculator can help you build a more accurate estimate.
