MONEY COMMENT
Your Possessions Are Worth More Than You Think

By Jane Mack (TMFJane)
November 10, 2003

I once heard a tale, possibly apocryphal, about a family who jetted off to sunny Spain for a fortnight and came back to find their house completely empty of its contents.

It probably came from my mum who once told me that luggage labels on suitcases should always be folded so opportunist thieves can't see your address. Apparently they hang around at airport check-ins looking for families going off on holiday leaving behind unoccupied houses that are ripe for picking.

According to a survey from More Th>n, the financial services arm of Royal  & SunAlliance (LSE: RSA), thieves would have a veritable bonanza these days if they turned up with a van and raided your home at their leisure.

The contents of a typical house are now worth £42,000, and in the South East, just over £48,000 – an increase of 42% since 1994. And it's left the typical household underinsured by an average of £27,000.

Insurers tend to increase contents cover by referring to the Consumer Durables section of the Retail Prices Index (RPI) but More Th>n believe this hasn't really gone up in line with reality. As a result, they've decided to use the index of Household Final Consumption Expenditure (HFCE), which, they believe, provides a more accurate reflection of our spending habits and a more accurate value of our possessions. Customers will now get automatic contents cover of £60,000.

So, if you're the proud owner of such things as computers, wide screen TVs and DVD players and have got some fancy power tools in the shed, it might be time to check that your possessions are fully covered by your own insurer, and that it's the best deal. And (tip from my mum), don't forget to use discreet luggage labels next time you toddle off on holiday.

Find more about Home Contents Insurance.