Beware of under-insurance

Life doesn’t stay the same and neither do your possessions. Whatever age or stage you are at, taking some time out to create an inventory of all your contents and keeping it up to date could take the headache out of tracking everything should the worst happen. Plus, you’re less likely to full prey to the all-too-common danger of under-insurance. Here are some of the times in your life when you may need to review your contents cover…

The seven stages of life

1. At some point between your late teens and late 20s you’ll move out of the parental home and into student digs or a shared flat or house. You will need to cover your personal items both in the house and when you’re out and about. Your most treasured possessions will probably be your clothes, DVD and CD collections, electronic equipment such as PC, laptops, iPods and games consoles.
2. By your late 20s or early 30s you’ll have probably bought your first place. Time to say goodbye to tatty landlord furniture and hello to bright new pieces that express your personality. In all the excitement of furnishing your new home don’t forget to add new items to your existing inventory, carefully working out how much cover you’d need to replace all of it. As you get more settled, it may be that your relationship with your boyfriend or girlfriend suddenly gets a whole lot more serious and before you know it they’re moving in with you. Put in a quick call to your insurer before they do so to ensure that all their stuff is covered from day one.
3. From your 30s onwards life continues to change at breakneck speed, with many people moving on in their careers and finding that they have more cash than ever to spend on household essentials and luxuries. It’s also a time when many people get married, so all in all, it’s an exciting, if exhausting, period. Chances are you’ll need to amend your sum insured to cover all those extra items – wedding rings, wedding presents, the latest gadgets, the expensive furniture that may have replaced your starter set. You’ll be surprised how much has changed in the last 10 years or so.
4. Whether you’re in your 20s or 40s, no one can quite prepare you for parenthood and the upheaval it creates. Children bring great joy but are expensive too, and come with a truckload of equipment from buggies, cots and car seats to piles of clothes and toys. Try to steal some time away from your new parenting duties to update your cover to include all the new arrival’s gear. And once your little one’s mobile, think seriously about adding accidental cover, if you haven’t already done so. Toddlers exploring their exciting new world can wreak havoc on household items, all be it in an adorable fashion.
5. As your child becomes more independent and enters the teenage years, it’s worth checking to see if your contents insurance covers the expensive items they’ll no doubt be carrying around with them at school and at play. Mobile phones, iPods/MP3s, games consoles etc all need cover.
6. The time has come for your child to leave home for the first time, and whether they’re staying in student digs or a privately-rented place you may want to consider adding them to your contents insurance policy. How has life changed for you now that the demands of parenthood have lessened? It may be that you’ve taken up a new hobby or have bought expensive artefacts for the home. Take a look around your home and make sure everything matches your inventory. If not, you may need to up your sum insured.
7. Retirement is often a time of scaling down. Your offspring will have (fingers crossed!) flown the nest by now and you’ll be thinking of moving to a smaller property. Maybe there’s less room for all your furniture so you’ve decided to give some of it away or sell it. This is the ideal time to revise your inventory and ask your insurer whether you should reduce the amount of cover you have. Once that’s sorted you can sit back and enjoy your new-found freedom and fill your days with the hobbies and activities you enjoy.