Nine out of ten homeowners could face nasty contents insurance surprise
14/03/2005
A major new study has revealed that more than 90 per cent of British homeowners have inadequate home contents insurance.
A study by Marks & Spencer Money, believed to be the first of its kind, saw an independent loss assessor visit 52 homes across the country and find that 92 per cent of householders had underinsured their contents by a third - leading to an average shortfall of £10,000.
The average homeowner visited by the independent assessor guessed his or her contents were worth in the region of £22,300 - when the assessor valued them at £32,400.
"People often don't realise that they should estimate the replacement costs of items rather than what they paid for them," explains Tim Craig, the insurance assessor who carried out the study.
"This becomes more complicated with antiques, jewellery and furniture that may cost more to replace over time, whereas other items such as computers and televisions may cost less to replace."
Underinsuring can lead to a serious loss of money - not only in terms of the value of the items but also in insurance payouts, which can be subject to an 'underinsurance' clause.
Under this type of clause, if household contents have been valued at only two-thirds of their actual worth, the claimant may only be entitled to that two-thirds sum.
Stag and hen parties abroad could cause insurance headache.
Those off on stag and hen weekends abroad are probably worried about alcohol-related headaches - but new research suggests that they should also be prepared for painful losses if they haven't taken out travel insurance.
Insurance company Egg estimates that one in three British people will follow a friend abroad to celebrate in style before his or her wedding - and with one in ten spending more than £1,000 each for the party, they have a lot to lose.
The research reveals that 17 per cent of revellers lost valuable items on stag and hen parties in foreign destinations last year, and ten per cent had items stolen.
The popularity of extreme activities such as go-karting and paintballing, and the probability of consumption of more than a few beers, also led to difficulties - nine per cent required medical attention and four per cent actually got arrested.
Without insurance, anyone in this situation could find themselves in hot water.
"It's always risky to travel abroad without insurance; especially it seems if you are going on a stag or hen party," said Andy Deller, director of banking and insurance at Egg.
"Taking out travel insurance can help avoid the nasty shock of returning home to substantial medical bills, or the prospect of paying for valuable items that have been lost or stolen."
An online quote will take a matter of minutes, and you can see just how much you could save.
Securing your home & garden
- Introduction
- Secure your doors and windows
- Insert security devices
- Security for flat owners
- Outdoor security
- Leaving your home unoccupied
- Moving house
- Christmas preparations
- Wedding preparations
- General security precautions