Could your contents be under-insured?

A helpful checklist for protecting your world

Although there are studies which show that many individuals in the UK are underinsured, what is underinsurance and what does it mean?

Underinsurance occurs when you have not taken out enough insurance cover to meet your needs, which could have an impact when an event happens that requires a claim to be made against your policy.  At the time of a loss, if you are underinsured, the Insurer may only pay a proportion of the sum you are claiming for. However, there are some simple steps you can take to ensure that the possessions you cherish are protected with the same care and precision with which you chose them.

1. Replacement Value

Make sure you understand and review your cover regularly to ensure the true replacement value for your possessions is covered by your insurance policy.

2. Hidden Treasures

High-value items often get stored carefully in cupboards and drawers to be out of harm’s way, only to be forgotten when the insurance schedule is drawn up, so don’t forget them.

3. Overlooked Outbuildings

Garages, gyms and outbuildings often go unnoticed and the high value bikes, tools and gym equipment can easily be forgotten or overlooked.

4. The Price of Gold

The market price of precious metals and gemstones fluctuates significantly, and the replacement value of jewellery and gems moves with it. We recommend that a professional valuer or jeweller appraises these items every 3-5 years.

5. Market Forces

Changes in the market can have a substantial impact on the value of collections of art, fine wine, jewellery or watches over time. Make sure your insurance is based on current day replacement costs rather than the purchase price or an old valuation.

6. Gifts and Inheritances

Collectibles, antiques, and fine art that you’ve been gifted or inherited should have an up-to-date market valuation and be added to the schedule of contents.

If you’re not sure if you have the right level of cover for the things you value in your home, we’re here to offer advice. Please contact your usual Kerry London adviser, or email us at info@kerrylondon.co.uk

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