Shopping sprees that leave you short of cover
How much new stuff did you accumulate over the last year? Was there a new laptop for the kids, a top-of-the-range dishwasher for the kitchen, jewellery on your birthday and some new dresses for summer parties?
All those purchases and presents add around £3,000 a year to the value of our household contents according to insurer More Than.
Yet despite the increasing value of our possessions, one in four homes has no contents insurance, and those of us who do have cover often underestimate their ever-increasing value. So when do we need to watch our limits?
Weddings
A gorgeous sparkler on your finger is worth an average £1,800 yet most contents policies have a "single article limit" of £1,500 for valuables. Get expensive items listed separately on your policy or go for one with a higher single-article limit. Hiscox, for example, offers cover up to £15,000 per item on its "505 house and contents" insurance.
Standard contents cover insures items within your home; so add on cover "away from home" for rings, as the most common places to lose them include beaches, pubs and toilets.
Two-thirds of us underestimate the value of our wardrobes. Splashing out on dresses and suits for summer weddings bumps up the overall value so declutter or work out an accurate replacement cost.
Graduation
Forget grubby text books and second-hand clobber: the average student hoards £3,500 worth of stuff in student digs. That means coming home to lodge with mum and dad can put pressure on their insurance. If parents have downgraded cover after the kids left home, it may need to be increased if they return, or swapped for a policy with unlimited cover such as one from Marks & Spencer insurance.
On the flip side don't wildly overestimate the cover you need just in case, as this will raise your premium.
Moving home
New home, new furniture: and that new sofa, dining table or TV can add thousands to the value of your contents. Always check and review your insurance limits after any big purchases. Not only should you think about the overall limit if a fire or flood wiped you out lock, stock and barrel, but the maximum payout per item.
And if you're moving, are your worldly goods covered while they are in transit? This is worth checking as some insurers provide unlimited cover for loss or damage while moving within the UK, while with others it's an add-on.
Other times to check cover limits include a new partner moving in. And talking of new arrivals, a new baby typically adds £2,000 to your contents cover in equipment and nursery furniture.
Birthdays & Christmas
Long gone are the days of nuts and oranges. These days iPods and laptops mean the average Christmas stocking is worth £300 according to insurer Axa. And what about cover for all those presents you've bought but yet to hand out? Some insurers, including the AA and Barclays will automatically increase your contents limit by around 20 per cent for a month over Christmas. But don't forget to check limits when it comes to ongoing cover for presents you're given.
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