LV= Says Brits Underestimate the Value of Home Contents

One of the leading England’s and Wales’ insurance companies, Liverpool Victoria Insurance Company Limited has recently published the results of the research, conducted in September 2009 by Opinium on behalf of the company’s home insurance division, LV=, which suggest that many Brits underestimate the value of their home contents.

According to the research, a large number of UK residents underestimate the value of their wardrobe contents, such as clothes, bags, jewellery, and shoes, which eventually results in inadequate home contents insurance cover. An average Brit estimates clothes and accessories at £1,600 and £1,300 accordingly, while home insurance experts are determined that the value of wardrobe contents of an average Brit stands at almost £6,000.

Insurance professionals from LV= home contents insurance believe that the value of women’s and men’s wardrobes differ significantly with a women’s wardrobe being worth £7,000 (£5,000 worth of clothes and £2,000 worth of accessories) and a men’s wardrobe being worth £5,000. Both figures include expensive items, such as jewellery for women and business/sports apparel for men.

After the results of the research were published, LV= Home Insurance made a statement, in which it warned Brits of the possible consequences of wardrobe underestimation, including the real cost of items’ replacement should any damage occur. Company’s spokeswoman, Ms. Emma Holyer, said that many Brits tend to think of such household items as electronics, furniture, and jewellery when purchasing a home insurance cover, yet they oftentimes forget to calculate the cost of clothes’ replacement and, thus, do not include dresses, suits, bags, and shoes into the value of home contents. She, however, mentioned, that LV= Home Insurance rarely sees claims associated with total destruction of wardrobe contents.

The results of LV= research also showed that slightly less than half (42%) of all home insurance products sold do not include cover for personal possessions regularly taken out of home, such as bags and laptops.