How to avoid the possibility of being underinsured

With everything from building materials and jewellery being more expensive than this time last year, we look at how this could be impacting your home insurance policy.  What happens if you don’t have the right level of cover for your property and belongings?

Your home and contents could be underinsured if your insurance policy isn’t sufficient to fully cover your needs. It can happen by miscalculation or by accident, but unfortunately you may not realise until you need to claim, at which point it might be too late. Simone Straker, Technical Claims Executive explained

being underinsured doesn’t usually impact you until you have to make a claim, but could result in the amount that you can receive in settlement of a claim being reduced, so it’s really important that your insurance cover is correct

As a homeowner, you need to consider the value of your home and contents at least each time your insurance policy renews, but this can of course be difficult to estimate. Often, homeowners will insure their home for what they originally paid for it, but the cost to rebuild it, which is what the insurance is based upon, can be much higher.

So it’s worth using our 'What Sum Insured' guide and calculator to get a better idea, or seek professional guidance or a valuation from a Chartered Surveyor, especially if you have undertaken any home improvements or acquired new possessions.