4 in 10 people are in the dark when it comes to valuing their possessions*

  • It is estimated that just under 11million households2 in the UK are not confident that they are valuing their possessions correctly for their home contents insurance, or have no contents insurance at all, according to A-Plan’s Insurance Spotlight Report, 2019
  • The ABI reports the average UK home contains £35,0003 worth of possessions.  Incorrect valuations of  just 10% could mean there is £37.1bn4 of mis-valued contents across the UK
  • Furthermore, A-Plan’s Insurance Spotlight Report 2019 shows that 44% of UK consumers have not reviewed the high value items they have at home within the last 5 years, and nearly a quarter (24%) think they have no high value items in their home at all
 

Based on a new report, A-Plan estimates that 10.6 million homes in the UK are valuing the contents of their homes incorrectly. This could mean possessions worth up to £37.1bn are valued incorrectly, even if just small margins of error are made, based on ABI average possessions figures. Just a 10% miscalculation could mean the average household contents is undervalued by up to £3,500, with Buckinghamshire being the worst region for mis-valuing possessions.

According to A-Plan’s new Insurance Spotlight Report, based on research conducted with 2,000 consumers, more than 58% of UK consumers are focused on getting the cheapest possible policy.

Buying the right home insurance is one of the most important purchases a household can make, and the consequences of making the wrong choice can be devastating. However, new consumer research from A-Plan shows people are uninformed when it comes to the value of their home contents, risking leaving themselves open to invalid home insurance policies, rejected claims and potentially being left seriously out-of-pocket.

The lack of expert advice has a significant impact on consumer confidence, with 39% of people saying they are not confident they have valued their possessions correctly, or at all.  This is even more of an issue for 18-34 year olds where a huge 62% are not confident in the value of cover they have for their home insurance. Furthermore, 44% of UK consumers have not reviewed the high value items they have at home within the last 5 years, and nearly a quarter (24%) think they have no high value items in their home at all.

Gavin Cox, Aylesbury Branch Manager at A-Plan Insurance, said; “High-value items should be reassessed every three years to ensure they are valued at the correct amount and to avoid claims being rejected. The value of certain personal belongings such as jewellery, designer clothes or even vinyl records can significantly fluctuate.”

The report suggests overall there is more to be done to engage consumers about protecting their possessions, especially within the younger generation. Many of this group own multiple expensive devices but are at risk of taking out snap-judgement policies that will not cover them sufficiently. In some cases, they may not be covered at all if inaccurate details are provided.

Cox continues; “There are many factors that can affect your home contents cover. It is difficult to estimate the value of contents as condition, age, and rarity can all have an impact. Each provider will have slightly different rules which makes it hard to give a broad brush answer without probing the specific details, something an insurance expert can do much more easily than a consumer. Finding thirty minutes to get face-to-face or over-the-phone advice with one of our advisers could save you hassle in the long run and make sure you get the right policy, saving the potential misery of finding that you did not have the insurance in place that you thought you did.”

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Notes to editors

The A-Plan Insurance Spotlight Report aims to start a conversation about increased transparency – investigating consumer attitudes and behaviours towards home, car and business insurance to establish where knowledge gaps exist and generate ideas to help consumers and communities better protect themselves.

With over 90 high street branches all over the UK, A-Plan Insurance offers dedicated one-to-one service over the phone or in a high street branch near you. A-Plan provides home insurance for all kinds of homes and contents, from apartments to large estates.

Established in Oxford in 1963, A-Plan is arguably the leading independent high-street personal lines broker in the UK. The company provides a complete range of competitive insurance products to consumers and small businesses – from household, car, van, travel, pet, classic car and health insurance to shop, office, tradesman and fleet cover. Through its network of over 90 branches across the UK, A-Plan prides itself on the highly personal service it offers to the communities in which it operates. Its presence within the local community is core to the Group’s value proposition, enabling the business to better understand and serve its clients and to manage insurance risk more intelligently. This highly personal client service proposition is the foundation upon which A-Plan’s success has been built.

A-Plan Insurance is a trading style of A-Plan Holdings and is authorised and regulated by the Financial Conduct Authority (FCA). It is also a member of the British Insurance Brokers’ Association (BIBA).

For more information visit www.aplan.co.uk

Notes to editors

* A-Plan Insurance Spotlight report, 2019 UK nationally representative research, 2,000 UK consumers conducted by Netfluential

2Figure calculated based on A-Plan’s Spotlight Report of 39% UK consumers (Sample size 2,000 UK adults) were not confident they have valued their home possessions correctly or had no contents insurance at all, applied to total of 27.2 million UK households (ONS November, 2017)

3 Figure sourced from Association of British Insurers ABI, February 2018

4 Figure based on 10.6 million households (39% of UK households) with an estimated mis-valuation of 10% of home contents

 5Figure sourced from Association of British Insurers ABI, February 2018