Sheffield Broker Warning to Homeowners about the Pitfalls of Underinsurance

12th May 2014

Sheffield based insurance broker IFM today warned that the home contents of many homeowners could be underinsured which could mean many local households wouldn't get nearly as much money as they thought if they made a claim.

In response to this threat, IFM has provided the following top tips to ensure home contents are property protected. Review the value of your contents and possessions every year. Don't forget gifts and purchases over the years - index-linking can't account for these. Insure your possessions for their full value not just the most you think you may claim for Check the real cost to replace your contents on a 'new for old' basis the figure is almost certainly more than you think.  You'll be astonished how much it costs if your house were destroyed by a fire. Inflation may have fallen in the last year but certain valuables such as jewellery and watches have still seen huge increases in value. If you are under-insured, insurers can reduce your claims settlement.  For example, if you insure your contents for £60,000 when the replacement cost is £75,000, you will be under-insured by 20% and with some policies you may receive only 80% in settlement. John Leigh, Director at IFM Insurance said; Professional valuations offer the best solution but can be expensive.  A cost effective alternative is to go through your home room by room and assess the cost to replace everything at today's costs, not forgetting the contents of lofts, cupboards, basements, and outbuildings. Ask your professional adviser for a checklist to guide through the process. -