Sometimes people underestimate the actual value of their home’s contents. Accumulating items over several years can unexpectedly make the contents of your home worth more than your insurance policy will cover in the event of a claim being made. So, keeping tabs on how much you have in your home and its value is very important.
Not enough cover
In 2016, the Association of British Insurers estimated that the average three-bedroom property contains items worth up to £55,000. If your home’s contents are covered up to the value of £30,000, a claim for the entire contents would leave you significantly out of pocket.
Insurance policies often include limits on the total amount that can be claimed, as well as on the amount which can be claimed for any individual item. Typically, the single item claim limit is between £1,000 and £2,000 but this will be dependent on your provider.
Hidden home treasures
Inherited items can be hidden treasures for which you may have no idea of their true value. It could be an old vase, a clock or even an old vinyl which may be worth a fortune. So, if you think it could be valuable, you should have it valued, even if you don’t particularly like it! If it has been in your family for decades, it might be worth a considerable amount of money.
There could even be an unexpected valuable in your home which is just sitting on a shelf waiting to be discovered. Some books are fetching thousands of pounds at auction, such as modern favourites like Harry Potter and the Philosophers stone in which a first edition fetched £60,000 earlier this year. So, it may be worth checking those boxes in the loft to see if your children or grandchildren have left any hidden treasures behind.
Extra cover needed
If you do find that you are lucky enough to have a valuable item in your property and decide to keep it rather than sell it, make sure that you have the correct level of home and contents insurance for your property.
If you have purchased an item which you know to be of significant value, then it stands to reason that you should update your contents cover to reflect this. Although your monthly/yearly premium will increase, it’s a small amount in comparison to having your valuables stolen or damaged.
You can find policies which will cover some items for up to £5,000 and in some cases policies can be found which offer unlimited cover for expensive items.
Revaluing your items on a yearly basis will ensure that your policy remains adequate for covering them. Item prices can fluctuate in the same way as gold or stocks do, so if your item increases drastically over the course of the year and you don’t declare the change, you will only be entitled to the declared value.
Always keep as much documentation as possible. Keep your valuation certificates, receipts and any other documentation that gives evidence of how much your expensive valuables cost and proof of ownership.
Our home insurance specialists can offer you a personalised quote to suit your needs. Call them today on 01243 219333 or visit www.PayingTooMuch.com.
