Home and contents insurance seems to be a mystery to many households according to research by the Co-Op, which found more than five million have no cover despite the average value of contents reaching almost £40,000.
On the face of it, this type of insurance seems straightforward. It covers you for the loss of, or damage to, personal possessions in your home; ranging from laptops, TVs and furniture to clothing and jewellery. It’s perhaps when you get to the small print that the problems start.
In fact, 42% of the people surveyed said they find insurance policies confusing and 92% would like insurers to make policies easier to understand. It’s easy to see how this confusion could put someone off taking out cover, or prompt them to choose the cheapest policy available. And when you put price before value you risk taking out cover that lets you down when you need it most.
Evidently the insurance industry should do more to make their policies easier to understand, but there are a few steps you can take to make sure you find appropriate, good quality cover that fits your circumstances. If you’re confused about the cover you have, or you’re about to take out a new policy, these are some of the things we think you should consider:
Key steps to take
- Check the insurer’s definition of valuables
- Find out if the policy comes with accidental damage as standard – many don’t
- Don’t underinsure, make sure your possessions are covered for the right price and tell your insurer about any particularly valuable items
- Check if the contents of your garden shed or outbuildings are covered
- If you live in a flood-risk area, check your insurer’s policy on flood damage
- Check the policy exclusions before signing up
- Keep your policy up to date to allow for new purchases
Don’t stay in the dark about home insurance. Talk to us for expert, tailored advice.