Author: Bridget Carter

They are all the things that people enjoy using in their homes after hours or at the weekends – DVD players, computers, cameras and televisions with plasma screens.

But have you ever considered how much these items have pushed up the value of your home contents insurance?
It is these electronic luxuries which has made the cost of one’s contents insurance a third higher than it was ten years ago.

If you have small children, it is unlikely there is much of high value in their bedrooms. But several years on, your children’s rooms are likely to be littered with game boys, computers, expensive DVDs, sports gear and the list goes on. Even jewellery is something that often gets forgotten or over looked when it comes to contents insurance.

So having said this, perhaps it is worthwhile reassessing the value of your home contents. The reason why it is important to make this assessment is that if you are under-insured the firm with which you have taken out the insurance policy may not be prepared to pay out what is owed to you. These firms are legally within their rights to do this. Most of the time, however, the approach they will take is to just pay out less than your contents is worth.

The good news is that insurance companies are fiercely competitive when it comes to contents insurance and so many offer discounts for more than one policy. They also slash premiums just to secure extra clients. For example, the company Direct Line will discount your insurance if you buy with them on-line and also if you take out cover for both contents and buildings. Remember that things such as burglar alarms can drive down your premium costs.

The other thing that is useful to know is that if you have an item that is worth over £1500, you might have to insure that separately. Most of the time a typical house contents policy has a £75,000 limit. Some specialist insurers offer high net worth policies. These are policies where your possessions are covered but you do not need to state individually what they are. For those with an overseas house or belongings that they move between various properties, these sort of policies are idea.

It might be useful to know that Norwich Union, HSBC, Axa, Barclays, Chubb and Hiscox all include identity fraud in their insurance cover, but this is normally covered by your bank anyway. Also, Chubb and Zurich will cover the risk of attack in your own home.

If you are a first time home buyer, it can be the case that the company that offers you a mortgage also requires you to take out the lender’s in-house buildings and contents insurance, despite the fact that there are cheaper options elsewhere.
Regardless of where you take out your contents insurance or the deal you opt for, it is important you keep record of the true value of your goods in your home. If you are under insured, you might find it to be the case that you are not insured at all.

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