The UK Insurance Blog

An interesting piece in yesterday’s Telegraph talking about how easy it is forget that the contents of our houses increases over time. They’re reporting that it’s not unusual for claims adjusters to reduce a claim by as much as 50% simply because the contents of the house were underinsured. They state that “Figures published by Abbey last year show that 257,000 of all home insurance policies, across both building and contents cover, were declined as a result of underinsurance.” I can’t believe that the claims were totally disallowed, the normal procedure is to reduce the claim by the percentage of under valuation. Thus if I take out contents insurance that provides cover for £30,000 and the insurance assessor value the contents of the house at £60,000 then you should only expect to be paid half of the amount that you claim.

The article also points out that there is a wide difference in the blanket cover (i.e. the contents not individually valued and listed) offered by the leading insurance companies. Direct Line’s basic policy offers £15,000 of unspecified item cover whereas More Than has the limit set at £75,000. Once more it’s telling us that we should research all insurance cover before making a final choice. Product loyalty is often misplaced, one company could have the best value car insurance whereas their home insurance sucks…always take a few minutes to do some research. You’ll find a wide choice of insurers on the home insurance pages of the website.

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