A massive 47 per cent of people say they've never increased the value of their home contents insurance since they originally took it out, yet admit they've spent thousands of pounds on things for the house, including new carpets, expensive furniture and hi-tech gadgets.
What is more, a staggering one in three people in the UK (36 per cent) have no home contents insurance at all, according to Yorkshire Bank, which recently launched a new home insurance service. The number of uninsured households is particularly high in Wales where the figure rises to more than 50 per cent.
Equally concerning is the fact that many of those who do have insurance aren't convinced it's adequate. The bank's research reveals almost one in two insurance holders have no idea if their policy would cover the cost of replacing all their belongings. One in five are unsure about whether their cover is "new-for-old" replacement cover, or whether they'll just get the second-hand value of the items they're claiming for.
Geoff Greer, Yorkshire Bank's chief operating officer (head of Yorkshire Bank), said: "There seems to be a lot of confusion among consumers about home contents insurance, and this may be leading to people being under-insured. Our research shows that 41 per cent of people have absolutely no idea how much it would cost them to replace everything in their house. It's easy to under-estimate, which can lead to people being insufficiently covered."
