Do you have enough contents insurance?

If you were lucky enough to be showered with gifts at Christmas or splashed the cash during the New Year sales, have you thought about whether your new possessions are protected from loss, damage or theft?

Many standard contents insurance policies have limits, both single item and collective limits to how much can be insured. If you have had a particularly successful holiday season, you may find yourself one of the seven million homes that are currently underinsured.

Pete Harrison, insurance expert at MoneySupermarket.com said “While nobody wants to pay more than they have to for home insurance, failing to properly evaluate your home contents could cost you dear in the event of you having to make a claim."

Lack of insurance is risking heartache

Given that many of our possessions can be high in value, both financial and sentimental, the repercussions of losing your possessions would be an experience that none of us want to imagine.
Research has shown that an average family of four estimates their contents to be worth around £25,000, whereas the true value is usually around £55,000.

So if you home was completely ransacked by burglars or your possessions were destroyed by a fire or flood, you could find yourself £30,000 short when it comes to claiming on your contents insurance policy.
It is also worth checking that any valuable antiques, collections or paintings fall within the single item limits. Most standard policies will have a limit of £10,000 and a total limit of £20,000. If you have an item which surpasses the item limit, you may need to seek specialist insurance.

Therefore it is a good idea, once Christmas and the New Year are out of the way, to tour your home with a pen and paper and list all items on a room by room basis.
Remember to include items such as curtains, carpets, clothes and linen which are usually missed but can also be insured.

How to keep costs down

Unfortunately the more contents you insure, the more likely your annual premium is to increase. However there are ways in which to keep costs down.
Many insurers will offer a discount to those homes that are suitable secure. For example, installing a standard NACOSS alarm system can reduce your annual premiums by up to 7.5%. Also a further 5% can be saved by joining your local neighbourhood watch scheme.
Investing in securing your doors, windows and outbuildings, such as sheds and greenhouses, with appropriate bolts and locks will help keep costs down.