Contents underinsurance: are you covered for what your home really holds?

When reviewing home insurance, it’s easy to focus on the structure of your property - but the value of what’s inside is just as important. Contents often build up gradually over time, making it difficult to accurately assess their total worth, and this is when underinsurance can become a real risk. Understanding what is included within ‘general contents’ is the first step in ensuring your cover remains correct.

Below, we explore what insurers mean by ‘general contents’ and where gaps in cover can arise.

What is ‘General Contents’

To start, it’s important to understand what insurers mean by ‘general contents’.

For most insurers the definition of ‘Contents’, or ‘General Contents’ is:

• Household goods, personal property and clothing owned by you or in your possession and normally kept at your home.

Everyone tends to think of the big items - furniture, TVs, clothing - but contents cover is far more than this. It extends to everyday items that can easily be overlooked, including:

• Home furnishings & linen, such as cushions, curtains, carpets, rugs, towels and bedding
• Fragrances, handbags, belts, sunglasses and shoes
• Toys, games, game consoles and other electronics
• Outdoor furniture, outdoor toys, scooters and bikes
• The contents of your shed or garage, including lawn mowers & garden tools
• Kitchen utensils, crockery and small appliances like coffee machines and air fryers.
• Work Equipment (where not covered elsewhere)
• Books
• Aerials, satellite dishes and CCTV equipment
• Seasonal items stored away, such as Christmas decorations, summer furniture, suitcases and ski equipment.

When you look at your current contents sum insured, it’s worth asking a simple question: If you lost everything and were handed a cheque for this amount, would it be enough to replace what you have today?

Don’t forget your garden and outbuildings

Often overlooked because it sits outside the home, contents in your garden sheds and outbuildings are typically covered under your general contents - provided they are within the grounds of your property. These items tend to accumulate over time, which can make it easy to underestimate their overall value.

Whilst individual items might not be high value, things can add up quickly – particularly when you factor in a wide range of outdoor and stored belongings. This can include:

• Garden tools (lawnmowers, strimmers, hedge trimmers)
• BBQs and patio heaters
• Garden furniture and cushions
• Power tools and DIY equipment
• Sports equipment (golf clubs, paddleboards, camping gear, fishing gear)
• Children’s outdoor toys or play equipment

Even older items - such as a mower or hand tools - may not seem to be worth much, but the cost of replacing them with new equivalents can be higher than expected.

Outdoor items and contents in sheds are also often more exposed to risks such as flood damage, theft and fire, as they don’t benefit from the same protections as items kept inside the home. A recent BBC article highlights how quickly a fire can spread through a garden, potentially leaving homeowners significantly out of pocket if these items haven’t been properly accounted for in their content cover. Neighbours rally after fire sweeps through Crawley gardens - BBC News

It’s also worth noting that high net worth policies may include a defined allowance for trees, shrubs and plants where loss or damage occurs due to events such as fire, theft or vandalism – highlighting an area where cover can vary between standard and high net worth policies.

Some insurers may also apply limits to contents stored within outbuildings, so it’s important to check this and that it remains sufficient.

The risks of underinsurance

If you’re found to be underinsured - whether intentional or accidental - your insurer could:

• Apply average; meaning your claim payment is reduced in line with the shortfall. For example, if your contents are insured for £50,000 but should be for £100,000, you are 50% underinsured. In this case, insurers may only pay 50% of the claimable amount – meaning a £50,000 loss could result in a settlement of £25,000. Average can apply to both partial and total loss claims.
• Repudiate your claim and cancel your policy. In the event of deliberate underinsurance, insurers may void your policy from inception and refuse to pay the claim. You would then need to disclose this to future insurers, which could affect both availability and cost of cover.

Other things to consider

• Contents cover can extend to clothing and personal belongings for students living away at university, or relatives in care homes – so it’s worth checking how your policy defines cover in these situations.
• Many policies are written on a ‘new for old’ basis. Even if items such as sofas or electronics have reduced in value over time, it’s important to consider what it would cost to replace them at today’s prices.
• If your policy is based on a sum insured, insurers will typically apply index linking to help keep pace with inflation. However, this may not always keep up with the true rate of inflation, nor does it account for new purchases. Where policies provide blanket sums insured, it’s important to review the total limit each year and ensure it remains sufficient.
• With high-net-worth policies, contents such as artwork or jewellery are usually insured in a separate section. In contrast, standard policies may include these within the definition of contents - so it’s important to understand how your cover is structured and where your valuables fit. You read more about this in our article: Protecting your valuables: why it pays to be specific

What can you do?

• Carry out a room‑by‑room contents inventory (including outbuildings and the garden), then total the value and update your insurer or broker.
• Take photographs of each room annually and keep a photo inventory of any items of high value or particular importance.
• Review your sums insured following a renovation or after any significant life changes or events.
• If you’re unsure, professional contents valuations are available. We can help you assess whether this is appropriate for your circumstances and arrange one with a recommended valuer if required.

Taking these steps can help reduce the risk of underinsurance. However, ensuring your cover remains accurate over time can require a more detailed review of both your policy and the value of your contents.

How Howden can help

We work closely with our clients to ensure their contents cover remains accurate, appropriate and aligned to their lifestyle - particularly as values change over time and new items are acquired.

Our support typically includes:

• Helping you review your sums insured so they reflect the true cost of replacing your contents today
• Advising on policy structure, including how high-value items such as jewellery, artwork or collections are insured, and whether any items should be specified separately
• Highlighting key policy features and limits, such as cover for contents in outbuildings, garden items, or newly acquired belongings
• Recommending and introducing specialist valuers, where appropriate, who can support with professional contents valuations – from full home walkthroughs to individual items or collections, as well as desktop assessments where suitable
• Providing ongoing support as your circumstances change, helping you keep your cover up to date following purchases, renovations or life events

Some of the policies we have access to also include cover for newly acquired items, providing flexibility for new purchases throughout the year. However, it remains important to notify your insurer or broker as soon as possible (or at renewal) and to ensure you remain within any applicable limits. For example, Brit will pay up to 25% of your contents sum insured for loss or damage to newly acquired contents, provided they are notified within 90 days.

Ultimately, ensuring your contents are correctly insured is not just about value—it’s about avoiding the financial impact of getting it wrong. To speak to us about your home insurance call 020 8256 4901 or email privateclients@howdeninsurance.co.uk