Insurer Warns of Dangers of Being Underinsured

INSURER WARNS OF DANGERS OF BEING UNDERINSURED Eighteen million households in the UK have home contents insurance, leaving five million households unprotected1. Lloyds TSB Insurance warns, however, that even householders that have insured their property are in danger of being underinsured and could face not being covered in the event of a claim. The insurer recommends regularly evaluating home contents; if this was last done some time ago the result may come as a bit of a shock. The following helpful advice should ensure nothing is overlooked: · Start by drawing up a list of the rooms in your house and all the items in each room. · Think in terms of losing everything. Thankfully it's not likely, but it will give a more realistic value. · Remember that contents cover is not just about furniture. Items commonly overlooked are curtains, carpets, plants, ornaments, cushions and bedding2. · Ask teenage children to help with their rooms. They will probably have more computer games and CDs than you realise and are likely to have a much better idea of value. · Make an inventory of any collections such as CDs, videos or books and try to keep it updated. · Each insurer will have different upper limits on valuables such as jewellery. Check the limits and make sure your items fall within it. If not, cover items separately. .../more INSURER WARNS OF DANGERS OF BEING UNDERINSURED/...2 · It's always a good idea to send copies of official evaluations, descriptions and photographs of expensive items of jewellery to your insurer for their records, while retaining the originals for your records. · If a wardrobe or kitchen is fitted it is covered by buildings insurance. If it is freestanding it is covered by contents insurance. Things like cookers and fridges are classed as contents unless they are an integral part of kitchen units. · Clothing soon adds up whether your wardrobe is full of basics such as jeans and t-shirts or your style stretches to designer suits. Make sure to include the cost of replacing them. · If you realise that you are underinsured, contact your insurer immediately or look for one that offers a realistic level of contents cover (£50,000 is now considered adequate for the average family home). Jon Pain, managing director, Lloyds TSB Insurance, says: "Being underinsured can be very traumatic, which is why realistic levels of cover are vital. Hopefully by following our advice people will know exactly how much cover they need for total peace of mind." Lloyds TSB Home Solutions offers a straightforward one-level of contents cover which is £50,000. It is available through any branch of Lloyds TSB. -ends- For more information: Jo Ganly Lloyds TSB Press Office Tel: 0207 356 2075 Notes to Editors: 1 According to the ABI. 2 Excess will apply. General Insurance advice is provided by Lloyds TSB Insurance Services Limited. Registered in England No. 968406, 71 Lombard Street, London, EC3P 3BS. Member of the General Insurance Standards Council. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/23/20020423BIT01060/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/23/20020423BIT01060/wkr0002.pdf