What’s the true value of your home and contents?
14 May 2021
Your home and its contents are your most important and valuable assets, both in terms of monetary and emotional value. And yet, so many of us insure them quickly and cheaply direct with insurers or through internet search sites, unaware that such products may leave us under insured, exposed and may even cost more.
So, when did you last check the value of your contents, or your building?
It’s vital that you protect what matters most to you, but when did you last review your contents, or check if the items are covered are insured for their true current value on your policy?
Ensuring you are insured correctly seems like such a simple task, but it can be difficult to properly assess the contents of your home -and even trickier when estimating the correct value. Issues arise especially when policies are set up a number of years and items increase in value or new possessions are obtained, but these details are not added to the insurance policy. It’s all to easy to simply renew as is, or with a simple percentage increase on total value.
Almost 20% of high-net worth individuals have a home insurance policy based on a valuation from 20 years ago. Considering the huge economic changes and consumer behaviour in recent years, it’s impossible to create an accurate insurance policy based on old figures. 10 years ago something as simple as a set of hair straighteners would have cost around £50, now the new Dyson Corrale cost £400.
Underinsurance also occurs when you simply don’t consider some areas of your contents – kitchen equipment and crockery, curtains or shutters, rugs and carpets. We all think of artwork, jewellery and antiques, but what about tech, handbags and shoes?
If an item is damaged and you need to put in an insurance claim, it could cost thousands of pounds. Without the right insurance in place you may end up having to cover some, or all, of this cost yourself.
The same rule applies to buildings cover. An accurate value that includes demolition and rebuilding should be established and increased with the inflation rate. There are some fantastic online calculators that will help you establish the true cost of rebuilding 0 and don’t forget the cost of your kitchen, which industry experts say can easily be 5 – 10% of the value of your home.
If you need any help or advice establishing how best to protect what matters to you most and avoid the nightmare of underinsurance, contact our Private Client Team or Charlotte Perkins.