Gadgets, gear and gizmos make sure your covered

More than two million people are leaving possessions worth more than £20,000 at risk by failing to check their home contents insurance now Fair Investment Company is urging consumers to check that they are covered.

Millions of pounds worth of gadgets and gifts are at risk of loss, damage or theft unless residents ensure that their new gadgets are covered under their home contents insurance policies, in particular after the Christmas period which sees the average Briton spend £384 on presents, buying around 18 gifts each.

What's more, according to research, one in seven policies does not offer additional cover over Christmas as the majority of insurance companies calculate their figures based on the value of your home contents when you take out your policy.

Director of Fair Investment Company, James Caldwell explains: "Christmas is meant to be a time of enjoyment and these days; the gifts we give are more expensive than ever before. However the good times can quickly go bad if there is a breakage or, worse still, a burglary. The amount of money lost can really mount up, especially if you don't have a policy that covers all your new purchases."

Worryingly, of the three million privately rented homes in the UK, 72 per cent do not have home contents cover, leaving more than £50 billion worth of items at risk from burglary especially considering that many of these renters are young professionals with disposable incomes often spent on luxury items like plasma screens, laptops, iPods – an attractive booty for an opportunist burglar.

While the most common reason for not obtaining a policy is the cost, many people think that their belongings are not worth insuring however, recent figures from Cornhill Direct calculated that an average of £2,200.48 was spent this Christmas, on top of the value of goods already in the home.

But while theft is one worry, fire and flooding are also major considerations for revellers over the festive season.

"Winter time brings with it all sorts of concerns whether you are a homeowner or renter. With bad weather forecast, if you live in a flood risk area, home contents insurance is simply a must. Likewise, the risk of fires over the Christmas period is 50 per cent higher than at any other time of the year," adds Mr Caldwell.

And if you add to this the fact that the 2007 must-have gifts included the iPhone, Nintendo Wii, Tom Tom Sat Nav and the iPod, costing an average of around £200, home contents insurance certainly seems like a good idea.

"Many policies now offer optional extras such as additional cover for gifts, emergency home cover in the event of a burst pipe or leak and if you make your home more secure, you could benefit from lower premiums," says Mr Caldwell. "All in all, it is certainly worth shopping about and comparing a number of policies to ensure that all your contents are insured."

Get covered, compare contents insurance at fairinvestment.co.uk/compare_contents_insurance.aspx.