Don`t forget contents insurance in rush to beat VAT change
Shoppers purchasing expensive household items to beat the rise in VAT should remember to update their contents insurance, says the ABI.
January 4 2011 will see the VAT rate rise to 20% from 17.5%, with some experts predicting that consumers will splash out an average £650 each before the new rate begins.
Nick Starling, the ABI's Director of General Insurance, said: "In the excitement of a new purchase, updating your contents insurance may be the last thing on your mind. Yet, a simple phone call to your insurer will ensure your new items are covered for damage or theft. It is also sensible to keep receipts, as this always helps when making any claims."
The ABI has a guide to contents insurance, which includes a spreadsheet to ensure consumers are not under-insured. It can be seen at abi.org.uk/contents
According to a study by the Centre for Economic and Business Research, a typical household's contents are worth around £44,500, whereas the average sum insured is £35,000.