Britons are being urged to carefully calculate the value of their home contents, as new research reveals that nearly half rely on a 'rough guess' when insuring their possessions. The study, commissioned by Go.Compare, found that 67% of UK homeowners have never properly valued items such as devices, bikes, or jewellery, despite estimating their belongings are worth an average of £46,422.94.
Shock Findings on Insurance Habits
Only 17% of respondents said they carefully calculate the value of their possessions before completing their policy. The survey of 2,000 adults also showed that almost a quarter (23%) have not reviewed their insurance policy in the past couple of years, while 31% have not updated their cover despite making significant purchases within the last three years.
Cost-of-living pressures are influencing decisions, with 14% admitting they have lowered their level of cover to reduce costs. However, 41% did not realise that underinsuring home contents could result in a reduced payout if they need to make a claim.
Expert Advice on Avoiding Underinsurance
Nathan Blackler, home insurance expert at Go.Compare, 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 unsure if their current policy includes an 'average clause' – where payouts are reduced if the holder is underinsured. More than half would also struggle to provide proof of ownership for their belongings, with 27% in doubt of ever being able to replace everything if they were to lose it.
Financial Impact and Forgotten Items
What's more, 26% would depend on a credit card to replace items, 55% would tap into their savings, and 14% said they would approach family or friends. Laptops or tablets, engagement or wedding rings, and bikes were the leading high-value items overlooked in policies. Meanwhile, curtains and blinds, flooring, and clothes were identified as the most frequently forgotten items to include on 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.
