Home Insurance - Home contents are undervalued - 06/06/2008

What would you do if you came home and found all your worldly possessions had gone? Whilst this is unlikely; for people who are victims of crime, or suffer loss of possessions through a natural disaster this can be a very difficult time.

Home contents insurance protects against events such as these; meaning that those with cover are able to replace what they have lost. However the amount of money received form an insurance claim may not be enough. A survey by legal & General has shown that more than half the respondents underestimate the value of their home contents. Whilst the average home contains more than £40,000 pounds worth of goods most people felt their things were worth far less. 

The cost of having to replace everything may come as a shock to those people who underestimate the value of their home contents and therefore under insure themselves.

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