More than £276bn worth of possessions are uninsured, according to new research.
A new home cover study by GoCompare home insurance estimated that the total value of the UK’s contents is £827bn, but around 9.3 million households do not have any contents insurance at all.
Risk of underinsurance
The research by the comparison site also found that many of those who are insured do not have the right amount of coverage.
Approximately 5.6 million homes in the UK are underinsured for their contents, meaning that millions may not receive the funds they’d need to repair or replace their possessions – even if they claim.
Less than a quarter (24%) said they know how to calculate an accurate valuation of their possessions, meaning 76% are at risk of having insufficient coverage from their policy.
And less than half (43%) said the value of their possessions is up to date on a contents insurance policy.
Ceri McMillan, home insurance expert at GoCompare, said: “It’s shocking to see that so many might not have the coverage they need to keep their possessions safe. Millions of pounds are at risk of being lost, highlighting that many of us need to take action to make sure our possessions are properly protected.
“While it might not be the first thing on your mind, it’s critical that you update the value of your home’s contents regularly. Otherwise, you risk being underinsured and might not get the funds you need in a worst-case scenario like a fire, flood or theft.
“This results in the cruel double-whammy of losing your possessions and having to absorb the financial cost of replacing them.
“A good way of getting into the habit of updating your insurance is to make sure you revalue your possessions whenever your policy renews. You should also consider updating it after you’ve made any big purchases, such as jewellery or tech, or after big occasions like Christmas and birthdays where you might have an influx of new possessions.”
