How to avoid being under-insured

Insurance provider, Direct Line, has recently carried out a report which shows that as much as £212.9 billion worth of home contents remain vulnerable and not covered with adequate protection, and that over a quarter (26%) are under-insured by as much as £20,000. One in five people actually have no contents cover at all.

In the uncertain financial climate, many people may be making cut-backs in their spending – possibly cancelling insurance policies or deciding  not to take them out in the first place. This obviously might reduce a household’s monthly outgoings, but it could leave on average about £14,000 worth of their possessions under-insured.

Often, people will undervalue the collective worth of all their possessions from the offset, or may forget to increase their cover when they acquire new, valuable items. Things like antiques and family heirlooms can also increase in value over time.

We’ve put together a basic guide to help you avoid being under-insured:

  • Go through your home room by room making a detailed list of all the items to be covered.
  • Check to see what is automatically covered by your policy and what is not. You may have to specify and add some items to ensure they are fully covered.
  • If you have contents that leave the house regularly – such as an engagement ring or gadgets, make sure the insurance covers them both inside and outside of the home.
  • You may have to tell your insurance provider about particularly expensive items. High-value possessions might not always be automatically covered.
  • Be aware that you might need to buy additional cover for your bike and your laptop.
  • If you have a garden shed or outbuilding, check that your policy covers items kept in these places.
  • Keep an eye on your policy and re-assess the level of cover you need from time to time. You may need to increase it with the addition of new possessions.

Policy Expert

Our customers are at the heart of everything we do, so we have a team of experts with a real passion for making sure people get the cover that’s right for them. To speak to one of our experts, call 0203 014 9300 or email

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