High-Value Insurance: A Growing Concern for British Homeowners

Living in a big, expensively furnished house can be more trouble than it's worth, especially with burglary on the rise in rural areas. Thieves often target high-value properties, and insurance companies are starting to cater to the needs of those with large houses and valuable contents. However, many homeowners rely on traditional home-insurance contracts that don't cover them adequately. Specialist insurers are now offering high-value insurance policies, tailored to the specific needs of those with valuable possessions and big houses.

Key Takeaways:

• At least 650,000 households in Britain would benefit from high-value insurance, but most rely on traditional home-insurance contracts.
• Specialist insurers like Hiscox have experience dealing with high-value claims, especially those involving art and antiques.
• Insurers like Hiscox offer discounts for security measures, fire alarms, and smoke detectors, as well as membership of neighbourhood-watch schemes.
• Under-insurance is a major problem, with householders often understating the value of their possessions, leaving them unable to replace them in the event of a claim.
• Insurers like Wellington Personal Insurances link the amount of contents insurance to the rebuilding value of the house, ensuring that householders are not under-insured.
• Some insurers, like Chubb Insurance, recommend regular revaluations of valuable items to prevent under-insurance.
• Policy excesses, or deductibles, can vary depending on the insurer, with some imposing mandatory excesses and others offering discounts for higher excesses.

Statistics:

• 17p is the cost of buildings insurance for a £100 sum insured, but this can rise with risk of subsidence or weather damage.
• Contents cover ranges in price from 60p to £4 per £100 of property, depending on what is being insured.
• Hiscox offers a 5% discount to householders who photograph their valuables.
• Membership of neighbourhood-watch schemes can lead to discounts on insurance premiums.

Sources:

• Hiscox marketing director, Rob Page
• Sir Peter Cadbury, Conservative party supporter
• The Sunday Times, 1994
• Insurance companies such as Hiscox, Wellington Personal Insurances, and Chubb Insurance
• Specialist insurers like Lombard General