How much are your belongings worth?

FRIDAY, NOVEMBER 25: Nearly one-third of Bermuda residents do not have home contents insurance.

The Argus Group survey was released yesterday with renters being the most vulnerable as 56 per cent do not insure their belongings.

The research commissioned exclusively by the Argus Group also raised concerns that even those with home contents insurance may not have sufficient cover to protect themselves, with less than half of residents (48 per cent) able to place a total value on their belongings.

This is an issue because if the insurer realises that a policyholder is underinsured, they will  work out the level of underinsurance as a percentage and take this percentage off of the claim pay-out.

Contents insurance covers the policyholder against a wide range of perils including theft or fire, hurricane, burst pipes or flooding, which could destroy everything an individual has.

John Doherty, executive vice president of Property & Casualty, the Argus Group, said: “We understand that given the financial challenges presented by the current economy, people are looking to minimise their overheads as much as possible and may think of insurance premiums as an unnecessary expenditure.

“I would however urge people to take a long-term perspective and consider whether, if the worst happened, they have enough money to replace their belongings.”

“From our experience in setting up home contents insurance policies, we know that our clients are often surprised by the value of their physical assets once they make some calculations and realise how quickly the total can run into thousands of dollars.”

Savings

He said a professional wardrobe is normally in the region of $10,000.

“ If you add that to the cost of replacing your TV, laptop, BlackBerry, personal stereo, jewellery and other high-value items, you are looking at an amount that most people could not afford to cover with their salary or even savings.

“Home contents insurance offers peace of mind, knowing that you can make a claim to replace your belongings should the worst happen.”

Contents insurance is often sold as part of a package alongside buildings insurance but can also be purchased as a stand-alone policy for those who don’t own the property they live in and therefore aren’t the building insurance policyholder for that home.