Insurance jargon and the small print: why it pays to pay attention

When it comes to lengthy terms and conditions, most of us scroll straight to the end, quickly checking that ‘read and understood’ tick box. But when it comes to our insurance policies, where seemingly endless amounts of insurance jargon falls over multiple pages, do we give them the same treatment or truly give it an eagle-eyed once-over?

Unfortunately, many of us fall victim to the former and ignore the notorious small print, either stashing our insurance documents in email archives or tossing them into the miscellaneous basket, which is already overflowing with 'read it later' papers. But by simply shifting our mindset from "it will never happen to me" to "I am prepared for the unexpected," we can avoid miscommunication and make the claims process far smoother.

Understanding your insurance cover

When it comes to the contents side of our policy, our attention often goes straight to fine art, jewellery and watches, often overlooking the small furnishings that quietly add up in value. I may not hold a PhD in Fine Art, but one thing is clear: the UK is experiencing constant shifts in financial circumstances. Whether it’s electricity, fuel, gas or even the price of milk, everything is on the move.

So, while that Rolex Daytona rests on your wrist, please ask yourself - where does it sit in today’s market? If you think your valuations reflect assessments from six years ago, it’s worth remembering how much has changed since then. I would give you statistics, but they’ll likely be outdated by the time this article is published. My point exactly.

If the worst-case scenario arises and your insurer pays only a fraction – or declines extended replacement cover due to an outdated valuation, how would this impact you?

Sentimental value and specified limits

It's also important to remember that some valuables carry more than just a price tag.

They are often of sentimental value. That’s why insurers provide a detailed policy wording which you might think is just the “small print”, but it should be read with your policy schedule. The wording contains the specified and unspecified limits so that there are no grey areas.

Steve Moores, one of our Client Directors, talks more about that is his article: Protecting your valuables: why is pays to be specific

Underinsurance: more than a buzzword

When the annual renewal call comes around and the conversation around ‘underinsurance’ comes up, it’s not just part of a script, it’s a reflection of the challenge the insurance industry faces every day.

A property is the most valuable asset a person owns. But a house is not a home without its contents. As possessions accumulate, making sure your cover keeps pace is essential. The best time to get it right is at the start, not after a loss.

Valuations: the key to claims

Regular asset valuations can make a real difference when it comes to claims. Many insurers offer extended replacement cover for items valued within the last three to five years, giving policyholders broader protection. Settlement options typically include cash payments or repairs by approved providers, with no deductions for wear and tear.

Aviva’s Complete product for example offers up to a 50% uplift on replacement costs, underscoring just how valuable up-to-date valuations can be.

That said, many policyholders tend to focus on valuing high value items only, overlooking smaller possessions that may have appreciated over time. This approach can lead to underinsurance, as inherited items, such as jewellery, may hold significant value. Insurers recommend making a comprehensive inventory, not just of obvious valuables, but of everything that contributes to the overall risk.

Understandably, it’s difficult to understand what we truly have, and let’s be honest if I took my home flipped it over and tipped out the contents, even I wouldn’t know where to start. Thankfully, some valuation companies offer home visits, so you don’t have to take all of your jewellery out of your home to be valued. Others offer a walk-through service, valuing your contents room by room.

Peace of mind starts with preparation

A current and accurate valuation is the foundation of peace of mind. When disaster strikes, whether it’s a fire, flood, theft, or something completely unexpected, the last thing anyone wants is to discover that their insurance payout falls short of what’s needed to replace what’s been lost.

By making sure your assets are properly valued and that your policy reflects their true worth, you’re not just protecting your possessions, you’re protecting your ability to recover, rebuild and move forward. It’s about more than numbers on a page; it’s about resilience, security, and knowing you’re prepared for whatever life throws your way.

To speak to a member of our private client team about your home insurance call 020 8256 4901 or email privateclients@howdeninsurance.co.uk