In today’s world, we have a better understanding of the value of our possessions, the threat of risks like fires or the weather, and are more aware when it comes to protecting our properties from would-be thieves.
Yet despite all this, 28% of us don’t have a home contents insurance policy in place and £266bn worth of contents are at risk of not being insured.
Who isn’t insured?
The figures were reported by the Association of British Insurers (ABI), who also pointed out that the average UK household contained contents worth around £35,000, more than the average UK annual wage of £27,000.
There are around 22.6 million homes in the UK and roughly 5 million of those are not insured, a worrying statistic. 42% of those who didn’t have insurance, the claim reported, said they simply couldn’t afford the additional cost.
The most common home insurance claim in 2017 – the most recent statistics – were for water damage, these accounting for 28% of all claims. Another common claim was for a burst pipe, which had an average claim worth of £25,000.
How much is home insurance?
Despite a large chunk of uninsured homes blaming the cost of insurance for not being insured, the average cost of combined home and contents cover was £309 per year, which equates to just £6 per week. For contents insurance only, the annual cost dropped to £138, which works out around £3 per week. Given that is covering an average £35,000, we’d say it’s good bang for your buck!
Whilst £35,000 is the rough estimate for contents value in UK households, what about if you’re a couple in a small home or a bachelor in a flat? The average one bed flat has contents worth just over £20,000 whilst two bed flats have around £27,000. The average four bed house has possessions worth just shy of £50,000 while the contents in bungalows exceed £42,000. In total, UK household contents combined exceeded last year’s government spending at over £1 trillion.
What can you do?
For those with a mortgage, a home insurance policy could be required as part of the agreement with your lenders. Even if it’s not, a combined home and contents insurance policy can give you added protection, especially if you live in higher-risk area which suffers poor weather or has high crime rates.
At EIC Insurance Services, we can assess your situation and offer a home and contents insurance policy that is robust, affordable and flexible to your needs. Give us a call on 01442 286910 for a quick chat or quote.