According to the Association of British Insurers latest guide on buildings and contents insurance, research shows that one in five households could be underinsured because they did not know how much their home contents were worth. Under-insurance can cause serious problems if you have to make an insurance claim, as your insurance company may not pay out the full cost to replace lost or damaged items.
Make sure you're not under-insured:
- Dig out your home insurance documents – and find out exactly what level of cover you currently have for your buildings and contents.
- Calculate your contents – it’s easy to under-estimate the value of your contents and possessions. Our contents insurance calculator can help you work out an approximate value for your home contents.
- Check all your possessions are covered – some home insurance policies don't cover art, antiques or collectables, or items of high value, or the insurance company may require you to list these separately. Make a list of anything you're not sure about and ask your insurance company if you’re covered.
- Count the cost of a rebuild – when you get a quote for home insurance you may be asked to specify a 'rebuild cost' - this represents how much it would cost to completely rebuild your home, including materials and labour. This will vary according to the size, age and type of property you have, and can be a key area for being under-insured. The Association of British Insurers has a useful buildings rebuild cost calculator to help you do this.
- Keep your insurance up to date – it’s usually a good idea to review your buildings and contents insurance cover at least once a year, perhaps when you receive your buildings and contents insurance renewal.
Find the right Hiscox insurance policy for you
Automatic buildings cover of £500,000 and contents cover of £63,000 as standard. We can increase these levels of cover if you need more.
More information about home insurance >
Useful resources
Association of British Insurers – rebuild cost calculator >
