How much should you insure your contents for?

Brokers and insurance companies ask every client this question. Many clients find it hard to answer. An insurance valuation is the best way to get the right figure and avoid costly underinsurance.

The problem of underinsurance

Underinsurance is a serious and common issue. A recent analysis of Walk Through Validation (WTV) reports by Doerr Valuations found high levels of underinsurance, especially for fine art, jewellery, and watches.

In fact, 73% of clients were underinsured by at least 36%. Many were underinsured by as much as 50%. As a result, they risked major financial loss if they made a claim.

The solution is simple. You need either a Walk Through Validation or a full insurance valuation.

What is a Walk Through Validation?

A WTV is an independent contents survey for suitable clients. It includes a general contents assessment as well as fine art and jewellery. The aim is to confirm the right level of cover and to advise if a full valuation is needed.

The process takes about two hours. First, the valuer discusses your current sums insured and how you worked them out. They also ask where and how you would replace items if you made a claim. This could be through an interior designer, Harrods, John Lewis, or Ikea.

No two assessments are the same. Every client has different buying habits. The valuer needs to understand these habits to provide accurate figures.

The survey covers every area of your contents, including wardrobe items, shoes, handbags, outdoor goods, and outbuildings.

How the process works

The valuer works room by room and category by category. They record all details during the visit. At the end, they group the figures into the right categories and total them. The valuer then discusses the results with you and confirms the sums insured.

Specialist collections

Many high-net-worth clients own specialist collections. These might include contemporary art, jewellery, watches, silver, porcelain, or handbags. In these cases, the WTV recommends a full valuation for that category by a relevant specialist. This step ensures accuracy and proper cover.

What’s included in a home contents insurance valuation

The survey includes:

• Values and photographs of high-value items

• A photograph of the property and general room shots

• Security details, such as alarms, locks, and safes

The benefits of a WTV or full valuation

A valuation benefits everyone involved.

For you as the client, it confirms accurate sums insured and independent verification. You gain peace of mind knowing your broker has helped you get the right level of cover.

For the underwriter, it provides verified figures. This makes any claims process faster and easier.

The cost is around £500, which is often less than your policy excess. As a result, it offers excellent value for clients, brokers, and insurers alike.

Finally, when you have the right level of cover, you can be confident that a claim settlement will replace the contents of your home in full.