Does It Matter If I Undervalue My Possessions For Home Contents Insurance?

When valuing your possessions for home contents insurance, you need to be careful of undervaluing them - or neglecting to include individual items - and so coming up with a total valuation below the real value of your possessions.  If you do this, you will be underinsuring your home contents and you won't be alone - a recent survey found 9 out of 10 households in the UK had underinsured the contents of their home by at least �10,000.  The average value of home contents is around �30,000-�40,000, even before specialist items like art or antiques which may need to be insured separately.  So a failure to recognise the true value of your possessions is likely to result in a hefty replacement bill, over and above what your insurance will pay out, if you lose them.  Note also that the value of your possessions can change over time as you acquire new things (or that antique becomes even more valuable!) so you should re-assess that value every couple of years and then review the merits of the deal your current insurer is offering you in the light of the changed valuation.