It is crucial to make certain that the value of your sums insured are correct and represent the full replacement cost as new. Any inaccuracy could cause problems in the event of a claim as Insurers will only pay the insured amount. If this does not accurately reflect the total replacement cost as new, this could leave you with insufficient funds to repair or replace your belongings.
This is particularly important at the moment due to dramatic changes in the value of household items in recent times. In particular, the value of precious metals such as gold are at an all time high and they are expected to continue to rise over the coming months. This has led to an increase in the value of jewellery and watches which would therefore be more expensive to replace should a loss occur. If you have not had a recent revaluation there is a high probability that you will be underinsured.
Conversely, the prices for antique furniture are at their lowest for years. The Antique Collectors Club’s Annual Furniture Index shows that values dropped by 7% in 2015 alone – indicating that antique furniture is now struggling to keep up with inflation. This means that if you have antique furniture in your home, it may be worth less than previously valued.
It is extremely important to revalue your household contents at least every three years (or earlier if you have made a number of purchases recently) so that your sums insured are both accurate and adequate for your cover needs. If you would like to discuss the above, please call us on 0151 236 4568 and ask to speak to a member of our Personal Lines team.