Home insurance is one of the most important forms of insurance that we can take out, and protects us in the place many people feel safest, their home. Whilst for many their home is the safest place in their world, occasionally things do go wrong. A home insurance policy has been designed to protect against those things, and if your belongings, or your home are damaged or lost as a result of theft, fire, storm damage, flooding, vandalism or water damage from burst pipes or leaks in your home, you know that financially you will be covered.
As part of taking out a home insurance policy you will have been asked to work out the approximate value of the contents of your home, and you will then choose a level of contents insurance based on that figure. A customer who works out the value of the contents of their home is around £20,000 may opt for contents cover up to £25,000 just to be safe. The estimation process is one of the worst calculated by customers for any insurance policy offered anywhere in the world, with few customers truly adding add the value of everything they own.
On top of that, things like birthdays and Christmas can bring new items into the home, which will add to the value, and you may not consider important at the time, but could push you over your contents insurance limit.
After Christmas this year we are urging all home insurance customers to go back around their home, a room at a time, to add up the value of everything they own, thinking about that items cost to buy again today.
With contents insurance also including carpets, the contents of your fridge, freezer and kitchen cupboards, and all of the shoes, and clothes in all of the wardrobes in your home, you may have completely underestimated the value of your belongings. With the value of all of the Christmas presents on top, you may need to increase the limit of your contents insurance, as part of your wider home insurance policy.
Customers who do not have the right level of cover could find themselves not being able to replace everything they have lost, as the insurance company will not pay out more than the limit you selected when you took out your home insurance policy.