Recession shouldn't mean skimping on insurance

It might be a credit crunch Christmas with sales at their lowest for 30 years but experts are still predicting total spending of £82.3 billion in the three months to January 1st with record online sales, Virgin Money says.

And that should mean it's time to check your house insurance as there will be plenty of temptation for Christmas burglars as houses are packed with piles of festive presents pushing up the value of the contents.

If the worst happens homeowners could be at risk of their insurance policies not paying out as insurers can refuse or scale back any claims if you are underinsured.

That can apply to the total contents as well as individual expensive items stored in the house as relatives and friends gather.

Most home contents policies automatically offer you extra cover at Christmas like Virgin Money - but some do not and homeowners need to be sure of exactly what they are covered for now before the frugal recession-tinged festivities start.

Virgin Money Home Insurance automatically increases the cover by 10% over the festive period at no extra cost, giving extra piece of mind to homeowners. Valuables of up to £1,500 for a single item are also covered, should the item get lost or damaged.

Grant Bather, spokesman at Virgin Money, said: "We might all be tightening our belts and cutting back but Christmas is still a time to enjoy yourself and to catch up with friends and family.

"But of course just because it's Christmas it doesn't mean that burglars stop working and that accidents do not happen. We'll still be spending and buying presents and entertaining and that means potentially thousands of pounds worth of extra goodies in homes over Christmas. Homeowners should be vigilant and ensure that they have adequate insurance and protection in place."

Virgin Money urges homeowners to be careful and take the following simple steps.

Don't keep your Christmas presents in clear view through windows. Don't make it obvious to burglars.

Check your home contents policy to see if it offers automatic increased cover over the festive period.

If you are buying expensive single items such as jewellery or electrical goods update your existing policy so your insurer knows you have them in the house.

Keep receipts and proof of purchase for expensive items.

If you are away from your home for an extended period of time, such as taking a holiday or visiting relatives, make sure that someone is able to check on your house every day or so.

Make sure that all of your valuables are locked up and safe.