Is your home under-insured? 6 key tests

It’s difficult enough to cope when disaster strikes at home, but to learn your home or contents have been under-insured can be heart-breaking and could have serious financial consequences.

Most homeowners are vigilant in insuring their home and contents, but unfortunately many underestimate their true value or neglect to upgrade their policies when they purchase expensive items.

It’s important to make sure you have the correct level of cover when you take out a policy so that you’re fully protected should your home or property be damaged or stolen.

This checklist will help ensure you’re not under-insuring any of your possessions.

1. Is the sum insured in your policies current?

The sum insured is the maximum amount the insurer will pay if you make a claim. The correct level of buildings cover should cover the full rebuild cost of the property and not the property’s market value. Contents insurance should include all the possession inside your home and garden, including outdoor furniture, barbecues and the like. If you do any home improvements or purchase any expensive goods, remember to update your policy.