What do most people focus on when buying insurance cover? Price, price, price….
When people focus on price and not features, cover or sums assured they are storing up potential problems.
Are your precious possessions properly protected against fire, theft and accidental damage or do you have a hidden demon lurking in the background waiting to catch you out?
Exclusive research for The Telegraph suggests that up to 1 in 4 of those who have home insurance are underestimating how much their home contents are worth. Whilst up to 1 in 5 of us has no home contents insurance at all.
As a country we need to start recognising that the total value of home contents insurance should not only cover the obvious audio & video equipment and expensive jewellery, but also the contents of our wardrobes, our children’s toys and home furnishings like carpets, curtains and valuable artwork, our garage contents and especially any collections.
On average, every household in Britain is unwittingly underinsured by 30%, with the majority discovering the shortfall only when they make an insurance claim, at which point it is too late to rectify.
When you focus on price alone it is far too easy to turn a blind eye to the true value of your home’s contents and grossly underestimate the level at which your insurance should be set. Most insurers use a clause called “condition of average”, which means that a claimant will never get the amount of cover stated on their policy if they have underestimated how much their possessions are really worth.
For example, if you insure £25,000 of home contents but your possessions are actually worth £50,000, you may only receive half of any claim you make on that insurance. So if you claim for a total loss and want £25,000 you will only stand to receive £12,500. Not a very nice result I think you’ll agree.
- Are you focusing on price alone at the expense of the right cover?
- Should any inherited items such as jewellery, furniture and antiques be added to cover?
- When did you last check on the cost to replace your contents?
- Have you actually read what cover you may, or may not have?
If you’d like to ensure that you’re properly covered then give us a call today at 020 8773 2222.