Don’t leave it to chance!

WHEN YOU’RE taking out a contents insurance policy, it’s so important to provide a correct estimate for your contents to make sure you have enough cover in place if you ever have to make a claim. Research has revealed that the average UK home contains nearly £30,000 worth of possessions – but only a third have a complete understanding of what their home contents insurance policy does and doesn’t cover[1].

The study found Baby Boomers estimate they have the most possessions to the tune of £36,166, while Gen Z have the lowest with £21,744. And the average one bed flat is estimated to contain £15,713, while the average four-bed house has £41,361 worth of goods.

IRREPLACEABLE OR PRICELESS
But the average adult adds to their belongings, purchasing around £1,000 worth of impulse buys every year. And one in ten of the adults polled admitted that when it comes to contents insurance, they tend to just buy the cheapest policy and hope never to need it.

Despite the older generation having more possessions, they are less likely to know exactly what their contents insurance covers than savvy Gen Zers. The results also found men are slightly more likely than women to have items in their home which they consider to be irreplaceable or priceless. The most common of these items was deemed to be photos, followed by jewellery and other pieces of art.

DAMAGED OR LOST SOMETHING
But three in ten adults have damaged or lost something, only to then discover it wasn’t actually covered by their contents insurance. On average, Britons believe they pay out £578 annually on different kinds of insurance, including for their home, car and pets. Those aged 25-34 spend the least of all age groups, at just over £501, with people aged 55-64 paying the most annually, around £615 per person.

DID YOU KNOW?

TOP 5 THINGS BRITONS FORGET TO ADD TO THEIR INSURANCE
1. Laptops and devices
2. Wedding/engagement rings
3. Watches
4. Designer handbags
5. Inherited items like antiques, artwork and jewellery

HIGH-RISK ITEMS
It is important when applying for home insurance that you specify expensive, high risk items like engagement or wedding rings, laptops and watches on your insurance policy because they’re easily stolen and resold.

Some people also often don’t know how much inherited items like antiques, artwork or jewellery are worth, so it’s important they get these valued and tell your insurer too. Every so often, it makes sense to review and update an inventory of the things in your home and check your home and contents insurance is up to date.

PEACE OF MIND
If you’re not sure whether your insurance covers things like lost engagement rings or smashed phone screens – check your policy or get in touch with your insurer. That peace of mind is well worth a small amount of ‘life admin’ every 12 months or so. Although the average UK home is estimated to house almost £30,000 worth of contents, while getting a good price for your insurance is important, it’s amazing how many possessions we can acquire over time so make sure your policy covers everything you need it to.

***The information in this article is purely informative. Contents Insurance is available in the market, but we do not offer this service in-house at Charles Cameron & Associates. However, our professional, friendly advisers are still on hand to support you and can help you explore all of your mortgage and protection insurance options.

Source data:
[1] Research carried out by OnePoll on behalf of AXA UK between 11–14 March 2022, among a nationally representative poll of 2,001 UK adults.