New research by specialist home and contents insurer Hiscox reveals that 60 per cent of high net worth homeowners are underestimating the true value of their possessions, leaving them at risk of being underinsured.
The insurer analysed the results of surveys carried out on behalf of their clients over the course of a year. In Hiscox’s experience, many homeowners are surprised when they discover the value of the things they own. Many have not considered the items they have accumulated over the years, items inherited or fluctuations in the value of jewellery, art or antiques.
These findings come as further research carried out for Hiscox by YouGov shows that 67 per cent of high net worth homeowners are confident they know the value of their home and its contents – a confidence likely to be misplaced in light of Hiscox’s own findings.
Andrew Cheney, risk and valuation advisor at Hiscox, commented: “After a while even the special things in your home can seem like part of the furniture. This means that when it comes to estimating the value of your home contents, it can be easy to forget about items that actually hold reasonable value.”
The consequences of being underinsured could mean that in the case of a loss, the payout will not cover the total value of the items lost. Regularly taking stock of contents, getting regular valuations and reviewing insurance policies, mean homeowners can then find the right insurance cover to suit their needs.
Cheney adds: “People spend their money in very different ways: some accumulating art collections, others designer labels and accessories. It is therefore important to consider all items in the home and not just those that are front of mind. Using a check list can help people conduct an accurate self assessment as it prompts them to think about including the easily forgotten items such as the curtains, carpets and bed linen.”
