British homeowners going for gold
The number of British consumers specifying items of gold on their home insurance policy has more than doubled over the past two years, but homeowners are potentially leaving themselves underinsured due to the rising cost of gold according to analysis of 3.2 million quotes through MoneySupermarket.
The fifth edition of the MoneySupermarket Monitor on home insurance, reveals recordings of specified items of gold on insurance policies have more than doubled since Spring 2010, with an increase of 103 per cent. However, despite the price of gold rising by an astonishing 43 per cent over the past two years, the average insured value of gold listed on policies has only risen by 5.8 per cent, suggesting many households could be considerably underinsured.
Further research by MoneySupermarket.com revealed a third of UK adults (28.9 per cent) have bought items of gold recently, with 16 per cent buying it as an investment. A fifth of those (21 per cent) have added the gold onto their home insurance policy as a specified single item. A further 30 per cent have not specified their gold on their insurance policy as they don't believe the value is high enough and another 19 per cent simply can't be bothered to add their gold onto their policy as a specified item.
Julie Fisher, head of home insurance at MoneySupermarket, said: "Many perceive gold as a ‘safe haven' asset during these challenging economic times, and the cost of gold has increased markedly over the past few years. However, our analysis shows that the average insured value of gold items has not risen in line with the market increases and many people could find their precious items are underinsured. It is therefore important people reassess the value of any gold they own. I urge people to make sure the increased value of their gold is reflected in their insurance policies rather than simply rolling over the insured value year after year. A gold ring, which may have cost a couple of hundred pounds several years ago, may now be worth four or five times that value, so it is worth seeking a profession evaluation.
"If you underinsure items on your policy, many insurers will invoke a condition of average clause which means you would only receive a percentage of the actual value of an item should you make a claim.
"Additionally, it is essential to add any specified items over £1,500 on your home insurance policy to ensure you don't take any risks which mean you are not covered for those items in the event of an accident or burglary."