Understanding the Value of Your Valuables

Understanding the Value of Your Valuables
Various research shows us that between 20-30% of UK households could be underinsured because they do not know the value of their home contents. This underestimation may mean that you may not get as much from your claim as you might have expected.






There are many reasons why households incorrectly estimate the value of their possessions:

The insured doesn’t complete a thorough survey of each room or there may be some expensive new items in the home after the policy has been taken (maybe following a birthday or Christmas). It’s also not uncommon to underestimate the replacement cost of a valuable – prices of gold have been steadily increasing for many years – when was the last time you had your gold jewellery valued?

Whatever the reason may be, this miscalculation could cause quite a headache should the insurer decide to ‘apply average’ if a claim is made. By applying average, an insurer can reduce their payout in proportion to the amount the claimant is underinsured. So, if you have understated your contents by 20%, suffer an incident like a fire and need to claim £12,000, you may find that you’re insurer may only pay out £9600 (80% of the claim), leaving you to find the remaining £2400.

The easiest way to reduce the chances of underinsuring your contents is to visit each room and calculate the value of its contents. It is important to remember to work out how much it would cost to replace the items rather than the list price you originally paid. Some of the most commonly undervalued or missed items are clothing, carpet, linen, furnishings, electrical equipment, jewellery, sports equipment and garden furniture. It is also worth reviewing the contents cover of your policy following a significant event like a birthday, Christmas or wedding.

Policy Expert

Our dedicated customer service team is always on hand to help, whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information speak to one of our experts on 0203 014 9300 or email ask@policyexpert.co.uk

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