Shoppers who purchased expensive household items, in order to beat the rise in VAT, are being advised by the Association Of British Insurers (ABI) to update their contents insurance .
January 4 2011 saw the VAT rate rise to 20 per cent from 17.5 per cent. Nick Starling, the ABI’s Director of General Insurance, said: “In the excitement of a new purchase, updating your contents insurance may be the last thing on your mind. Yet, a simple phone call to your insurer will ensure your new items are covered for damage or theft. It is also sensible to keep receipts, as this always helps when making any claims.”
The ABI has put together a guide to contents insurance, which includes a spreadsheet to ensure consumers are not under-insured. It can be seen at abi.org.uk/contents
A typical household’s contents are worth around £44,500, whereas the average sum insured is £35,000, according to a study by the Centre for Economic and Business Research.