Avoid Christmas cover chaos

Christmas is seven weeks away and with many homes in the UK likely to be welcome recipients of festive gifts, research reveals some insurers might not cover your presents.

Analysis from price comparison site moneysupermarket.com shows the AA will increase contents cover by 20 per cent from December 1 to January 6 free of charge, while Marks & Spencer already has unlimited cover. Other providers such as Sainsbury’s, Budget and Egg will boost contents cover by 10 per cent for items bought for Christmas. However others, including Endsleigh and Homeprotect, do not offer this free top-up on their standard policies, potentially leaving you underinsured 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: “Children and adults alike will look forward to ripping open their Christmas presents, and 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 can be one of the most attractive times of the year for an opportunist thief.

“The latest must-have TVs, DVD recorders and digital cameras can add thousands of pounds onto the contents value of your home. 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.

"Those taking advantage of free top-up periods, which generally end in mid-January, should consider increasing their cover when the offer ends, while those with other providers should already look at boosting their cover prior to Christmas.

"It is vital not to be underinsured. If you have £45,000 worth of contents in your home but are only insured for £30,000, your insurer might only pay two thirds of a claim, even if it is for less than £30,000. This could present an unwanted headache so soon after the expense of Christmas, especially when increasing your cover costs so little or, in some cases, nothing at all."

Some high-value items may 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 on jewellery or antiques. Possessions away from the home need attention so you should ensure mp3 players or similar items are covered when taken out.

Richard Mason added: “The importance of increasing your cover due to a Christmas bonanza cannot be underestimated. 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.”