A quarter of Brits are without home contents insurance

Insurance is one of life’s most frustrating entities - most of us who have it pay large premiums and effectively see nothing back for our money, but keep it ‘just in case’ the worst happens. Of course, if we go without it fate will surely trip us up and leave us wishing we’d bought a policy so we could make a claim.

Home contents insurance is not a legal necessity in the UK, unlike car insurance. As a consequence it’s not surprising that some of us are willing to take the risk of going without it to save a bit of cash – however, the sheer volume of these numbers is surprising.

According to research from a comparison website, 25 per cent of all homeowners in the UK lack home contents insurance. This is despite the fact that our homes usually contain our most treasured possessions, with goods of significant value including computers, plasma TVs and games consoles, that can collectively add up to be worth around £40,000.

Is going without home contents insurance a risk worth taking?

Think about the increasing numbers of storms in the UK and the extensive flood damage that led insurers to pay out more than £3billion in claims last year. Even if you take out buildings insurance to cover your bricks and mortar you won’t be covered for anything that isn’t a permanent fixture or fitting unless you have home contents insurance too.

All it takes is a kitchen accident or a dropped cigarette to set a home on fire, and the threat of theft and burglaries is one risk no homeowner can control.

Policies can also cover you in the event of an injury in your home and for liability if someone was injured within your home as a result of your negligence.

Take a quick survey of the value of the contents in your home and their monetary value and ask yourself if you could afford replacements if the worst did happen?

Once you’ve made an honest assessment of the value of your home contents, use a home insurance comparison tool to compare the quotes available. A typical family of four could spend less than £45 a month to insure contents worth £40,000.

How to find a good home contents insurance policy

To find a good home contents insurance policy it is worth looking beyond price and considering the level of cover on offer from each provider.

The most basic policies will offer indemnity cover – meaning, for example, that if your five-year-old carpet were burned in a fire the insurer would replace it with another five-year-old carpet with roughly the same level of wear and tear. Many policies however, now offer new-for-old cover as standard meaning that if an item cannot be repaired it will be replaced with a brand new equivalent.

Many policies offer cover for specialist items – such as garden contents, freezer contents and cash in the home. It’s also worth checking that your policy will cover you for high-value items (those worth £1,000 or more) – it may be necessary to take out separate cover for individual items.

Many home insurance policies offer automatic increases around Christmas and weddings in the region of 10% or £5,000 to ensure the presents you buy are covered. Indeed most policies will also offer accidental damage cover (usually at an added premium) – but you should check to see exactly what circumstances are included such as DIY disaster, carpet spills, ornament breakages, etc.

Think carefully about the level of cover you need. Many home insurers will offer expensive add-ons such as complete accidental damage cover, cover for personal effects taken out of the home, family legal protection and pest control. You should consider exactly what you need as these extras will bump up your premium.

How to save money on your home contents insurance

The key to cheap home insurance is to shop around for a policy that offers the right level of cover at the right price. Do not accept renewal quotes every year – be sure to compare quotes across the market and evaluate your level of cover at least once every 12 months. Also take advantage of online introductory offers.

You can save money on home contents insurance by enhancing the security of your home by fitting house alarms and smoke alarms. Installing time-switch lights, security lighting and changing the locks when you move into a new home will usually be rewarded by your insurer.

Inform your home insurance provider if you don’t smoke, and think about the level of voluntary excess you could comfortably afford were a claim necessary to secure cheap home insurance premiums.