Consumers ''underestimate the value of their possessions''
Published: 25 June 2008
By MoneyhighStreet Staff Leave a Comment
Updated: 30 November -0001
Consumers are undervaluing their possessions, meaning that they might find they do not have adequate contents insurance in place, a new report has warned.
A study by More Than examined the total value of peoples'' possessions at different ages and found that people in their 40s typically owned the most expensive items.
In fact, the research showed that the typical 46-year-old person in the UK has possessions worth £40,919.
However, the research found that many people are undervaluing their items, with the average 46 year old thinking their goods were worth just £28,917.
Overall, it was discovered that 56 per cent of Brits have no idea as to the total value of the things they keep in their home, suggesting many could have inadequate contents insurance. Over half said they thought that their current level of home insurance would cover them for the rest of their lives.
"Brits work hard enough to buy things but by not keeping track of what they own, they run the risk of being under-insured. The report shows that on average, people spend £13,000 every five years on things they keep in their home so home contents policies need to be checked and updated regularly as a result," commented More Than product director Dowshan Humzah.
Recently, Confused.com advised homeowners not to make it obvious when they went away on holiday this summer. The site said that taking simple precautions could prevent the property being targeted by opportunist thieves.