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7 Million Homes Under Insured

A survey conducted by Direct Line has discovered that nearly seven million UK households could be under-insured by an average of £20,000.

It is thought that homeowners could be cutting back on the amount of cover they have in an attempt to save money from their household budget.

Andrew Morrell from Direct Line has commented that the importance of home insurance should not be underestimated.

He points out that the average household contains £4,000 worth of furniture, £1800 worth of jewellery and £2,000 worth of clothes. All of these items would be very difficult to replace without having good insurance in place.

The research also showed that homeowners have very little idea what the true value of their household contents is. They also had no idea that home insurance should be reassessed if new items come into the home such as heirlooms or antiques.