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Daily Insurance Industry News
Sunday 18th of November 2018
September 21, 2009

Hiscox warns against underinsurance

by Richard Kilner

Story link: Hiscox warns against underinsurance

Hiscox has commissioned the ‘Fashionable Finances’ study, research which reveals that 69% of British adults have no idea how much the contents of their wardrobe is actually worth.

This exposes them to the risk of under-insuring their home contents, especially as the average British adult spends a hefty £1,000 on their wardrobe each year.

For a fashion-conscious 8%, this figure rises to as much as £200-400 each month.

Despite the belt-tightening effects of the recession, fashion is relatively unscathed with some 56% stating it had not reduced their spending.

The average total value of clothes, handbags and shoes comes in at £2,838 per individual, but 30% of adults questioned were unsure whether this sum was covered by their home contents insurance.

Hiscox’s household insurance expert Austyn Tusler has warned that this knowledge gap could result in underinsurance for home contents for wardrobes, and that this could be repeated with other areas of home contents cover.

Last week the insurer published research indicating that over half of newlyweds were putting themselves at risk of underinsurance on home contents coverage due to the sudden rise in possessions immediately after a wedding.

 

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