NFU Mutual suggests that homeowners review their home contents policy so they are not underinsured and do not have the inconvenience of a major loss.
It is a requirement for homeowners with a mortgage to take out buildings insurance, however home contents cover is optional. According to a recent survey conducted by the rural insurer, 65 per cent of homeowners are still estimating the value of their contents. NFU Mutual has raised concern that many homeowners may be tempted to underestimate the value of their contents in order to try and reduce their premium and economise on household expenditure.
John Kenny, Chief Claims Manager at NFU Mutual, said: “Updating insurance policies on a regular basis means homeowners can be confident they are getting the right level of cover, as there is nothing worse than paying for something that won’t work when you need it most. Attempting to reduce insurance premiums by cutting back on the sum insured may seem cost effective at the time, but could prove to cost a lot more, particularly in the case of a disaster like a fire or flood .”