37% of people in Dorset and Hampshire are in the dark when it comes to valuing their possessions

37% of people in Dorset and Hampshire are in the dark when it comes to valuing their possessions

Based on a new report, A-Plan estimates that more than 260,000 households in Dorset and Hampshire, and 10.6 million homes in the UK are valuing the contents of their homes incorrectly.

They also estimate that possessions worth up to £37.1bn nationwide 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. 37% of those in Dorset and Hampshire are not confident about valuing their possessions, below the national average of 39%. This could mean that a total of £939 million of possessions are valued incorrectly in these counties, specifically.

According to A-Plan’s new Insurance Spotlight Report, based on research conducted with 2,000 consumers, 58% are focused on getting the cheapest possible policy, with Dorset and Hampshire in line with the national average.


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.


Furthermore, 17% of South Coast consumers have not reviewed the high value items they have at home within the last 5 years, and 24% think they have no high value items in their home at all.


Alec Alexander, Bournemouth 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.


Alexander 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.”

 

1 A-Plan Insurance Spotlight report, 2019 UK nationally representative research, 2,000 UK consumers conducted by Netfluential in December 2018

2Figure calculated based on A-Plan’s Spotlight Report of 37% of Dorset and Hampshire responses in a national survey were not confident they have valued their home possessions correctly or had no contents insurance at all, applied to total of 725,467 Dorset and Hampshire households (Census figures 2011)

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 based on 268,422 (37% of Dorset and Hampshire households) with an estimated mis-valuation of 10% of home contents 

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