Put Your Mind At Rest This Summer

Don't let this insurance mistake steal the sunshine out of your summer.

This article has already been emailed to Fools as part of our Summer Lolly campaign. 

When you head off for your summer holiday this year, I suspect the last thing on your mind will be how safe your possessions will be while you're away.  Sadly, however, there's no denying empty homes are a prime target for burglars.

But what can you do about it?

The obvious solution is a home insurance policy which not only protects your belongings from theft, but covers many other disasters such as fire, flood and accidental damage.  

While, I don't think many of you would risk leaving the contents of your homes uninsured, do you really have enough cover in place and does your policy offer good value for money?

Are you under-insured?

Getting the right cover under a home insurance policy can be tricky. Even just working out how much cover you actually need is not as easy as it sounds.

In fact, recent research from Legal & General suggests 15 per cent of people have absolutely no idea how much it would cost to replace the contents of their homes.

The average home has contents estimated to be worth a massive £40,000, but -- according to Legal & General -- 27% of people put the value at less than £20,000, which means their home insurance could be up to 100% less than they actually need.

Imagine -- in the event of a claim -- finding your insurer is only willing to foot half the bill because you have seriously under-estimated the cost of replacing your belongings. That would definitely take the sunshine out of your summer.

So how do you make sure you have enough cover?

One way is to use an online home insurance calculator such as Legal & General's 3D virtual home, which will help you tot up the combined total of items from every room in your house. That way you'll make sure you don't miss anything out.

Most of you will remember to include the cost of replacing expensive items such as jewellery, your TV or computer, but have you thought about including say, the contents of your wardrobe or bits and pieces in your garage or attic which may have been long forgotten but are still valuable?  

Unlimited cover

Another way to make sure you've got all the protection you need is to buy a policy which provides unlimited cover. With this type of policy you don't need to worry that your guesstimate on the value of your home contents has fallen seriously short of the mark.

Not surprisingly, this doesn't come cheap. Premiums can be as much as double what you would pay for a policy with a specified level of cover. But you will -- at least -- have complete peace of mind.

Don't forget, even if you have a policy with unlimited cover, you'll still need to calculate the replacement value of single high risk items such as jewellery or antiques.

Have you switched lately?

If you have under-estimated the amount of cover you need, ask for an upgrade from your insurer now. Of course, you'll have to pay a bit extra, but how can you keep the costs of your cover down?

The best way is by shopping around to find the best quote for the level of cover you need. You can do that easily by comparing insurers at The Motley Fool Home Insurance Service.

Also don't fall into the trap of thinking you can only switch your policy at renewal. This isn't true. You can cancel your policy whenever you like, but find out if there's a charge for doing so first.  As long as you haven't made a claim, the savings you could make on a cheaper policy elsewhere could outweigh the cost of cancelling early.  

So what are you waiting for? Find the right level of cover at the right price today.  

More home insurance tips:

• If you're a homeowner, why not combine your home contents policy with your buildings insurance? You could earn a discount by using one insurer for both.
• When you're working out how much home insurance you need, remember to base your estimate on the amount it would cost to replace your items today, not on the actual value.
• Make sure you don't over-insure your home contents either. Unlimited cover may be overdoing it if the total cost of your possessions is below average.

Compare quotes at The Motley Fool Home Insurance Service