23rd February 2010
Wardrobe contents 'often underinsured'
Home insurance policies should be updated with the actual cost of the contents of your wardrobe as most people undervalue how much their clothes would cost to replace.">
A survey by Defaqto revealed, on average, the contents of a woman's wardrobe are worth £7,000 ? roughly double what they are thought to be valued at when setting up the policy with the insurer.
This would mean in the event of a fire, flood or other catastrophe to hit the home, a substantially lower payment would be issued and replacing items would be an extra expense for the victim.
Also, some policies have limits on individual items. Mike Powell, insurance analyst for Defaqto, said: "This means that you need to specify any valuable that is worth more than £1,500 to ensure that full cover is given."
When insuring your wardrobe's contents, the advice is to remember that policies work on a new for old basis, so make sure you know how much your items will cost to replace.
Despite falling retail sales in January across the UK, the clothing and footwear sectors benefited from growth, so check your wardrobe and make sure your insurance is up to date with an accurate figure.
By David Leonard
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