Christmas pressies can cause cover chaos

The public is being warned to protect themselves adequately this Christmas.

With the majority of people in the UK likely to be recipients of festive gifts, new research reveals many insurers may not cover your Christmas presents.

Analysis from moneysupermarket.com, the price comparison website, shows that well-known names such as Tesco, Churchill and esure automatically increase their cover limits by 10 per cent from December 1 to January 15 free of charge. Norwich Union increases the contents sum assured by £3,000 for losses occurring from November 15 to December 31 whilst Halifax has unlimited cover on its home insurance. However, others including Endsleigh do not offer this free top-up, potentially leaving you under-insured at a time when you are likely to have an influx of expensive items in your home.

Richard Mason, director of insurance at moneysupermarket.com, said:“For most people, the thought of being broken into is the last thing on their mind at this time of year. However, with new expensive gifts and gadgets in the house, it is one of the most attractive times of the year for burglars.

“New TVs, DVD recorders and digital cameras can add thousands of pounds onto the contents value of your home and if you don’t take the necessary steps to make sure you have protection for these goods, it could be a very unhappy New Year indeed. It is also worth remembering the top up period offered by some insurers ends in mid-January so it is well worth boosting your cover to make sure you’re not caught short after this time.”

If you have £45,000 worth of contents in your home but are only insured for £30,000, your insurer may consider you to be under insured by 50 per cent and therefore only pay half of any subsequent claim, even if it is less than the £30,000 sum insured. This could present a most unwanted headache so soon after the expense of Christmas, especially when increasing your cover costs so little and, in some cases, nothing at all.

Certain larger items may also need to be listed individually on the policy, as insurers often impose a single item limit of £1,000 or £2,000, although these tend to be jewellery or antiques. Possessions away from the home also needs attention and consumers should ensure that mp3 players or items of similar value are covered when taken out with them.

Richard Mason continued: “The importance of increasing your cover really cannot be underestimated, for as well as potentially leaving yourself underinsured on a claim, your premiums may also increase as a result, making it an even more bitter pill to swallow. A quick phone call to your insurer could save you a great deal of time and money in the long run. It also pays to make sure your provider is still offering the best deal available on the new level of cover, so always shop around.”