17 January 2011

Compare Home Insurance to Prevent Loss

If you have not updated your home contents insurance policy recently it may be a good idea to compare the market to see if you could benefit from a better deal.

A worrying 6.8 million households are underinsured new research shows, indicating a need for many consumers to compare home contents insurance online.

The study revealed over £200 billion worth of home contents are at risk due to homeowners undervaluing their home contents to save money, according to Direct Line.

On average, 26 percent of people with cover are underinsured by £20,000, with £138.5 billion at risk in total.

"It is far too easy to turn a blind eye to the true value of your home's contents and grossly underestimate the level at which your insurance should be set,” warned Andrew Morrell, Direct Line home insurance head.

An additional 20 percent have no home contents insurance at all, leaving an average £14,000 of possessions at risk.

"It is worrying to see the level of underinsurance in British homes,”said Kris Coombes, Direct Line valuer.

The report also revealed that 39 percent who have home contents insurance had not adjusted the value to account for inherited heirlooms such as jewellery, furniture and antiques they had recently acquired.

A further four percent admitted they simply had not got round to readjusting their policy, and others did not realise they had to do it at all.

Compare Home Contents Insurance

On average Brits own £4,000 worth of furniture, £3,000 of electrical and £2,000 worth of white goods, almost £2,000 of clothes and £1,800 of jewellery among other items.

If you have not updated your home contents insurance policy recently it may be a good idea to compare the market to see if you could benefit from a better deal elsewhere.

It is important you list all your valuables accordingly on your policy so if you were to lose anything in a fire or burglary for example you would be able to claim for exactly what have lost.

Compare Home Contents Insurance with MoneyMaxim