Watch out for the Christmas home insurance rip-off


Cynical home insurance firms are building up fear in the minds of policyholders to urge them to spend on more cover at Christmas when few really need to bother.

At a time of year when many are looking for cheaper home insurance so they have more to spend on gifts, some providers are suggesting that cover should be increased to make sure presents for family and friends are protected from thieves.

One Well-known home insurance comparison site piles on the pain by pointing out most families spend an average £250 on gifts and the most popular hiding place for presents is under the bed.

Going a step further, the same companys has even recruited a former burglar to give home security advice to add credence to their warnings.

His gems of wisdom include closing curtains so burglars can’t see in and not putting your presents under the tree because that’s the first place a thief looks.

The firm states that a survey shows 72% of us feel vulnerable to burglary at Christmas, yet while break-ins increase by nearly 66% at this time of year; only 25% of home insurance policyholders increase their cover. 

Meanwhile, independent insurance intelligence firm Defaqto reveals 90% of home contents insurance policies automatically increase their coverage limit for Christmas.

The increases are either:

  • A specified monetary amount with the actual increases ranging from £1,000 up to £25,000;
  • A percentage increase in the overall contents limit with the increase ranging from 5% up to 25%.

 The duration of this increase varies but it is not uncommon for the increase to be for the 30 days before and 30 days following Christmas.

“The temporary increase limits, and occasions for which these increases are given, vary considerably between policies so it is important for people to check that they have adequate home insurance to cover their needs this Christmas,” said Mike Powell, of Defaqto.

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