New Year check: Do you have enough contents insurance?

During the holiday period, the typical household will receive £712 in gifts and new purchases, according to research by Sainsbury's Bank Home Insurance.

Across the UK, at least £9 billion is spent on Christmas gifts, with the average household spending £502. Additionally, a further £3.8 billion is spent on post-Christmas purchases, equating to £210 per household. Many households spend substantially more, with an estimated 2.1 million homes receiving Christmas gifts worth at least £1,000, and over 690,000 homes purchasing more than £1,000 worth of items in post-Christmas sales.

The supermarket bank is recommending that people review the sum insured on their home contents policy every year to ensure they have enough cover. The period just after Christmas is a good time to carry out this check due to the increased value of goods in the home.

Fashion and consumer technology account for the majority of high value Christmas gifts. Jewellery, watches, designer clothing, laptops and cameras are the most popular items, with over 2 million households claiming they received each of these items in December 2011.

David Barrett of Sainsbury's Home Insurance, said: "Last year over £9 billion was spent on gifts and a further £3.8 billion was spent on post-Christmas purchases. After Christmas is not just a good time to take advantage of the sales but also time to reflect on the year ahead. We'd recommend adding a review of your home contents cover to those New Year's resolutions in order to make sure you are not underinsured.

The research revealed that last Christmas, almost eight out of ten households did not review their home contents insurance after the holiday season, potentially leaving themselves under insured.

David Barrett continued: "Checking the value of your cover, and notifying your insurer of any new high value items will take minutes and will ensure you start the year fully protected.

"It's always a good idea to keep receipts for any new items you may have, or have bought for someone else as this can help with any home insurance claims you may need to make in the event of fire or theft in your home."