Research indicates that homeowners are quite significantly underestimating the value of contents in their homes, despite one in three believing their contents are at risk, according to Admiral Home Insurance.
Admiral surveyed 1,000 people and discovered that although 67 per cent generally update their contents insurance annually, 13 per cent have never updated their policy, leaving many possessions at risk.
Meanwhile, 77 per cent of respondents said they had never had their vintage possessions and antiques valued.
The average contents value is £43,629, significantly higher than the £22,267 estimate provided by the average homeowner. The insurance company’s findings suggest it equates to a staggering £104bn worth of contents potentially being undervalued.
“It’s important that homeowners or renters provide a correct estimate for their contents, otherwise they could end up without enough cover should they have to make a claim,” said Noel Summerfield, head of household at Admiral.
“The value of most items can be searched on the internet, but antiques or jewellery should be valued by a professional before being added to your policy.
“It’s also important to ensure the total value of contents remains up to date, while most home insurance policies increase cover to recognise inflation, people often forget to add new purchased items, such as an engagement ring or a new television.”