Simon Hood, Chief Executive of Select & Protect commented,
“ Depending upon the source that you chose it has been suggested that up to 1in 3 only review the value of their contents every few years.
Considering there are over 20m UK households this amounts to a staggering lack of insurance possibly in the region of £50m, against insured value of some £1bn.”
Select & Protect has identified two main areas where under-insurance is most likely to occur:-
- First time buyers, who in no time will accumulate items for the home and themselves.
- Couples who begin a family - in no time there will be a vast array of toys and as the children grow up stereos, CDs, computers and sport equipment.
Hood continues,
“In the current economic climate where personal spending on luxury goods has reached an all time high it is even more important for people to check and adjust their cover. If you also consider the effect of Christmas, birthdays and anniversaries it is not hard to see how people can become underinsured in as little as one year.”
Select-Protect now offers a free online Minimum Contents Sum Insured Calculator found on www.select-protect.co.uk/calculator. There are three simple steps to check the level of cover is adequate.
- Step 1 - requires the number of bedrooms and whether there is a separate dining area.
- Step 2 - reviews general contents throughout the home such as: carpets, curtains, etc, electrical equipment, and collectables such as videos, CDs, books. It also includes miscellaneous items such as garden furniture, contents in sheds, garages and other outbuildings, DIY tools and similar items.
- Step 3 - deals with household occupants and their personal belongings.
The calculator automatically shows a basic sum insured which the homeowner can then increase according to their needs; for example a CD collection, jewellery, pictures, antique furniture, whatever will need a higher level of cover. It then gives you a grand total to compare with your current level of cover.
Hood concludes,
“Our online calculator is a quick way for homeowners to check their cover. As a person goes through the process it prompts them as to those items that should be included in the calculation. It could be five minutes well spent in the event of them making a future claim.”
