80% of households are underinsured

If you get burgled in the coming weeks you may well find your insurance company doesn’t pay out as much as you would like.

Millions of us are underinsured because we fail to review our contents insurance to take into account Christmas gifts and January sales purchases. Eight out of 10 households failed to increase their contents insurance cover last year.

According to research by Sainsbury’s Bank we should all put up our home contents valuations by an average of £712 every January. The average household spends £502 on Christmas gifts and a further £210 in the January sales.

In order for all these new purchases to be covered in the event of fire, theft, or flood we all need to take a look at the valuation of our home contents that we have given to our insurer.

“Checking the value of your cover, and notifying your insurer of any new high value items will take minutes and will ensure you start the year fully protected,” says David Barrett of Sainsbury’s Home Insurance.

While you are at it, take a few moments to see if you could get cheaper home insurance elsewhere. Taking a few minutes each year to shop around for home insurance could save you hundreds of pounds.