With those in the UK unable to exchange gifts outside of their determined Christmas bubble, potential delays could increase the risk of burglary for householders, as people hold on to presents longer than usual.
Thanks to events like Black Friday, we can make sure we get the best deal possible for gifts, especially when buying expensive items like laptops, tablets and video game consoles. Which is why we need to ensure we’ve got the right insurance cover in place for the duration of the Christmas period, should the worst happen.
Christmas is an expensive time of year and by following these simple steps, policyholders can avoid the costly risk of major under-insurance.
- Underestimating the value of your contents
This is one of the most common causes of household under-insurance. On average, the contents of a home can be worth over £35,000 – more than the average UK salary of £30,800.
You can discover the value of most items online, while unusual or high-value pieces like jewellery or antiques will benefit from a professional valuation.
It can be a chore to value your possessions, but worth it for your own benefit. So, make sure you go from room to room, making sure nothing gets missed. Some customers may be tempted to underestimate the value of belongings in the hope of securing a cheaper premium. However, to be sure of full claims settlements and to avoid paying additional premiums, it is essential to provide accurate contents values.
Oh, and don’t forget attics, sheds and garages when sweeping the house!
- Update expensive new purchases to your policy
It’s important that any newly acquired, high value items get added to policies as soon as possible. Otherwise, these new expensive possessions won’t be covered or accounted for should any loss occur. This isn’t necessary for every new item you receive around Christmas, but a succession of higher value purchases should always prompt customers to notify their insurer.
- Regular reviews and valuations
Carrying out regular reviews, at least every couple of years, is one of the most efficient ways of avoiding under-insurance. Even without any major purchases, most households are regularly acquiring new possessions and the value of these items is always changing.
Prices of high value items like jewellery, antiques and artwork are particularly susceptible to price fluctuations and under-insurance. Not to mention, some items are often inherited from family members, meaning that the true value of potentially valuable items is not known.
For items purchased abroad, jewellery or otherwise, exchange rate fluctuations can also influence the value of possessions. Major life events, such as getting married or having a child, should also prompt customers to reassess their sums.
- Understanding your policy details
It’s important for customers to be transparent about their contents insurance policies and definitions, and any exclusions or limits that may exist. Inner policy limits should be of particular note.
For instance, many policies will specify a limit for valuables. On top of this, each insurer may use a different definition for ‘valuables’. Understanding these definitions will allow customers to make informed decisions on how to group specific items and how to arrive at suitable sums insured.
Certain policies may also include inner limits for certain categories, which if exceeded could cause underinsurance. Customers should also be clear on whether they own any items for which they may be required to provide evidence of ownership or value in the event of a claim.
- Over-insuring your assets
You may be offered additional cover on top of your basic policy, such as protection against accidental damage. But your standard policy might cover everything you need, so make sure you aren’t paying for any unnecessary protection.
It’s a good idea to speak to one of our specialists here at Weir on 01670 365620, to make sure you have the right cover for your needs and that you’re not doubling up on insurance across several policies too.
