Is your cash at home covered for theft?

Independent financial research company Defaqto suggests that, with the onset of dark wintry evenings heralding an increase in burglaries, it is worth checking that your contents insurance policy provides adequate cover for cash you have at home.

At this time of year, people may be holding an unusually high amount of cash at their property: to pay for large Christmas purchases or holiday money if they are about to go on a winter sun or skiing holiday.

Defaqto analysed 299 home contents insurance policies and found that:

26% of home contents insurance policies provide cover of less than £500 for cash in the home, and a further 4% of policies provide no cover

It is important to check that your home insurance policy provides an appropriate level of cover.

Mike Powell, Defaqto's general insurance analyst, said: "Some people may have considerable amounts in money if they're about to go on holiday or buy something expensive using cash. Coverage for cash differs considerably among insurance policies.

"Burglaries increase during the winter months with the long dark evenings and it's important that you check that you've got adequate cover in case you become a victim."