Your home and its contents are probably the most valuable assets you own. It’s likely you’ve built up an extensive collection of furniture and possessions over the years, some of which could have a high value. But, you might not have thought how much it would cost to replace them if they were accidentally damaged, or even if the items are covered for their true value on your home insurance policy.
It’s vital that you’re adequately protected should an accident occur. If your furnishings are of considerable value, you may need to consider taking out high-value home insurance.
The problems of underinsurance
Protecting your property against damage or loss might seem like a simple task, but it can be difficult to assess the contents of your home. Things get trickier still when guessing the correct value. Issues can arise when policies are set up a number of years beforehand and items increase in value or new possessions are obtained, but these details are not added to the insurance policy.
Nearly 20% of high-net worth individuals have an insurance policy based on a valuation from 20 years ago. Considering the huge economic changes in recent years, and the variability in item trends and valuations, it’s impossible to create an accurate insurance policy based on dated figures.
If an item is damaged and you need to put in an insurance claim, it could cost thousands of pounds. Without the right insurance in place you might end up having to cover some, or all, of this cost yourself. We explains in more detail on what underinsurance is and how to avoid it in our underinsurance guide.
Focus on all the items
Underinsurance can happen when homeowners don’t consider all areas of their property. Instead, they might focus on a valuable piece of art or the number of major appliances in each room. But this can lead to items being left off the inventory, which can seriously affect the policy. It can be a costly mistake if a claim does have to be made.
Other easily overlooked items within the house include crockery, curtains, rugs and carpets. While they may seem small, the value of these items together can quickly add up to a significant sum. If you’re not sure of the replacement value, the internet is a great place to check the latest prices.
If you have art, pieces of jewellery and antiques, these should be professionally valued. Taking the time and seeking professional valuations now will help you avoid the dangers of being underinsured in the future.
The same rule applies to building’s cover. An accurate value that includes demolition and rebuilding should be established and increased in keeping with the inflation rate.
At Alan Boswell Group, we have a specialised high-value home insurance service that will ensure you have the right type of policy in place to cover your home and its contents. Call us today to discuss your needs on 01603 218000 and ask for our Private Clients team.
You might also be interested in: The importance of high-value home insurance