Recent research from Age UK Enterprises has revealed that 19% of homeowners aged over 60 have never updated their home contents insurance. In fact, a huge 74% of elderly homeowners are actually unaware that they even need to update their policies to include new, expensive items. Of those, 47% incorrectly assume that new or expensive items will automatically be covered as and when they renew their policies, without needing to tell their insurers about them.
Research shows that even the people who were aware that they needed to tell their insurers about new items took quite a bit of time to actually get round to doing it. This results in items being uninsured, some for up to a year at a time. The study also found that only 25% of later life consumers update their home insurance policies every time they purchase a big ticket item, and 51% admit to waiting until their annual policy renewal date.
Uncertainty about the Specifics of Home Insurance
Unfortunately, it’s clear to see that there is some uncertainty surrounding the specifics of home insurance policies, particularly among the elderly. It appears that many people simply aren’t aware that they need to inform their home insurance companies as soon as they buy something expensive for their home. Some think new items will be automatically insured, and others wait until their renewal date comes around to let their insurance companies know.
According to the research, this has resulted in an estimated £3,368 worth of items uninsured per household. Of course, the problem arises when those people come to make a claim on their home insurance, only to find that their items are not covered. It is, perhaps, an honest mistake to make, and one that is made repeatedly, but it’s also a deal breaker when it comes down to an insurance payout.
Understanding How Home Insurance Policies Work
Gordon Morris, the managing director of Age UK Enterprises said: “It’s important that customers understand exactly how their home insurance policies work and that they are empowered to take full control of their finances. Our research shows that clear guidance on the need to update home contents insurance after purchasing expensive items or renewing a policy is not being received. Reviewing contents insurance documents and calculating how much it would cost to replace all home contents regularly can go long a way to helping homeowners make sure their personal belongings are covered at the correct value.”
Low Cost Home Insurance Policy
As you can see, it is really important to make sure that your home insurance policy is up to date, and to ensure that you let your insurer know as soon as possible if you’ve bought any new high value items. If you are coming up to your renewal date and are interesting in finding a better deal to protect your home and its contents, contact City Insurance to find a low cost home insurance policy today.