"Overvaluing the rebuild cost of your property could mean that you’re paying more money than you should be for your home insurance"
Despite home and contents being voted the second most important insurance type, nearly three in 10 (28%) Brits admit to guessing answers when filling out applications, according to new research from Go.Compare Home Insurance.
Contents cover was the biggest culprit, with 34% of people foregoing a proper valuation assessment in favour of estimation. Overestimating the value of a home’s contents could be a costly oversight, leaving many Brits dishing out more in monthly premiums than necessary.
Another expensive mistake is over-valuing the rebuild cost of your home. One-third (33%) of UK residents guess the amount of money required to reconstruct their property.
Many don’t realise that the cost to rebuild will be less than the price paid for the property. This is because the rebuild value doesn’t include the price of the land the house is built on.
Other home insurance mistakes that cost include:
• Guessing the age of your property - a habit that 32% of Brits admit to.
• Not knowing the type of door or window locks you have fitted - certain locks can drive down home insurance prices, yet 28% of UK residents don’t know what locks they have.
• Estimating your home’s distance from water - 26% guessed the answer to this question, which is important in evaluating flood risk.
• Guessing your property’s current market value.
• Not knowing the materials on your roof or external walls - standard materials are sturdier and cost less to repair. These factors can make your premiums cheaper, but 20% of us will guess some elements of building materials.
Go.Compare’s home insurance expert, Ceri McMillan, said: “Overvaluing the rebuild cost of your property could mean that you’re paying more money than you should be for your home insurance, as your insurer will only ever pay the cost of the rebuild regardless.”