Don't underestimate the value of your possessions
Published ¤ 25/03/2011 11:11:22
Research from NFU Mutual has found that 65% of homeowners still estimate the value of their possession when considering home insurance.
According to the insurer, some people still intentionlally underestimate the value of their contents in order to reduce the cost of the insurance cover.
However, this is a dangerous policy, and could cause problems when making a claim.
When assessing a claim, most insurance companies will apply a system known as "underinsurance". If they find that the value of the contents is greater than the value insured, they will reduce any claim by a similar percentage.
A thrid of those questioned also said they had never reviewed their policy!
John Kenny, chief claims manager at NFU Mutual commented "Updating insurance policies on a regular basis means homeowners can be confident they are getting the right level of cover - there's nothing worse than paying for something that won't work when you need it most.
"Unfortunately, people are unlikely to appreciate the value of insurance cover until they need to make a claim.
"Attempting to reduce insurance premiums by cutting back on the sum insured may seem cost effective at the time, but in the long run it could prove to cost a lot more, particularly in the case of a disaster like a fire or flood."
At PKS we regularly review our clients needs to ensure that their policies always meet their requirements. If you would like a FREE review of your current policies, call PKS on the number at the top of the page, or click here to get in touch.
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