Valentine’s Day – Are your Contents under-insured?
It’s estimated that in 2018, the British public spent £650m on Valentine’s gifts. Jewellery and clothing being two of the top purchases made.
But with some households spending hundreds (if not thousands) of pounds on gifts, it’s a time of year that could see households under-insured with their new and significant purchases.
Underinsurance occurs when the figures to cover the damage is more than your sum insured. This generally comes to light in the event of a claim.
Different insurers have different ways of dealing with under-insurance. For example, it could lead to policyholder’s having their claims settlement reduced, or them having to pay an additional premium. In extreme circumstances, it could lead to a claim being completely rejected.
How to avoid the risk of under-insurance
Don’t under-estimate the value of your possessions.
It’s important to remember that not only should high value items be considered, but also the cost of replacing staple items in the home.
With most everyday items, you can find a price online. A good way of ensuring nothing has been missed, is to go from room to room and list everything. However, for the more bespoke and high-value items, it is worth getting a professional valuation done. Some insurers may require you do to this too. Not doing so may leave you vulnerable to significant under-insurance.