Monday, January 17, 2011
Category:
Secured Loans
According to a new report from Direct Line, ‘householders are risking their possessions by undervaluing their home contents’. In fact, the research – conducted by Opinium Research – revealed that a significant number of possessions are not insured at all.
Findings show that UK possessions to the value of £212.9 billion are at risk. It was found that on average 26 percent of those with contents cover are underinsured by £20,000, which equates to £138.5 billion worth of possessions being at risk. Furthermore, £74 billion worth of possessions are entirely at risk as a result of 20 percent of people failing to insure possessions worth an average sum of £14,000.
Head of home insurance at Direct Line, Andrew Morrell, commented: "There is no doubt that recession-hit Brits have a lot on their minds at the moment - but the importance of home contents insurance shouldn't be underestimated. No-one wants to think about the prospect of losing all their possessions. Unfortunately it is far too easy to turn a blind eye to the true value of your home's contents and grossly underestimate the level at which your insurance should be set - thereby putting your belongings at risk."
Direct Line’s report also revealed that 39 percent of those with contents cover had not adjusted the value in order to account for heirlooms, such as antiques, that they had inherited. Four percent were reportedly unaware that the value would need to be adjusted, whilst an additional four percent had simply not got round to organising the adjustment.
Direct Line valuer, Kris Coombes, commented: "It is worrying to see the level of underinsurance in British homes. People are putting treasured possessions at risk. Day to day items, furniture and clothes can really add up, let alone an expensive watch. In addition, items households may have invested in, or inherited heirlooms can push the contents limit over the amount covered for on their policy. Householders should think about the replacement value of their home's contents, room by room and item by item, the total will really mount up - and it might be a shock to realise how underinsured homes are."
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Homeowners who have contents cover but are not satisfied with the level of security in and around their property could consider taking out a
secured loan to fund any work required. One of many finance options available, a secured loan for home improvements could be used to replace any old, weak doors or windows for example. Extra locks could also be invested in for added security. What’s more, borrowers may wish to put up a sturdy fence or wall around the perimeter of their property to act as an obstacle to would-be intruders, and to hinder views into the property. Burglar alarms and closed circuit television could also be invested in if desired.
