Understanding underinsurance: is your home completely protected?

A worrying amount of homes across the UK could be underinsured. According to research from insurer NFU Mutual, 1 in 6 homeowners have never calculated the actual value of their possessions and could be at risk of financial loss should they need to make a claim.

The study, conducted in partnership with Yougov, revealed that 24% of British homeowners consider technology the single most expensive item in their house, with jewellery following as a close second at 23%. Shockingly, 1 in 5 British homeowners aren’t sure of the most expensive item in their house.

Ross Garner, high-value home specialist at NFU Mutual explained the importance of valuing your possessions: “Our research shows that many people simply don’t know how much their possessions are worth [and] even if they do have an inkling, their estimates are likely to be significantly wide of the mark if they haven’t had expensive items such as jewellery valued in the last five years.”

Do you have the right measures in place?

Assessing the value of your possessions every few years is imperative, as is updating your home insurance policy.

“Technology may be one of the more expensive purchases homeowners make, but it is also likely to depreciate quite quickly,” Garner added. “It’s often the items that aren’t bought so frequently, including those received as gifts or an inheritance, that can increase significantly in value over just a few years.”

Don’t risk it. If it’s been a while since you tallied everything up, now might be the time to make sure your home insurance cover is sufficient. Consider getting your items valued, especially any pricey possessions, and be prepared for any potential mishaps.

If you are due to renew your policy, compare alternatives to be sure you’re getting the very best deal on your home insurance. 

Last updated: Tuesday, 28 March 2017

 
 
 
 
 
 

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