December 2003

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A passion for January sales items could leave you underinsured

Britons spent £18.2 billion1 in the January sales in 2003, equivalent to six million, giant plasma screen TVs2
* Policyholders could lose out when making a claim if they don’t insure sales bargains for their full replacement value.

It is great to bag a bargain in the New Year but our passion for the sales could leave us woefully underinsured according to direct home insurer, MORE TH>N. During the January sales, many shoppers will be taking to the high street in search of bargains. Last year Britons spent a whopping £18.2 billion1 in the January sales on reduced priced electrical items, clothes, furnishings and other goods. That’s the equivalent of six million, 37 inch plasma screen TVs.2 And this year the figure is set to be even higher.

MORE TH>N warns shoppers to insure their bargains for the full pre-sale value in case they need to be replaced in the event of a claim, as this may be hundreds of pounds more than the sale purchase price. For example, if a hi-fi system bought for £525 in the sale was reduced by 25% off the normal retail price, it needs to be insured for £700 as this would be the true cost of replacing it once the sales are over.

Recent MORE TH>N research has revealed that the value of home contents in a typical British house come to as much as £42,0003 and many people may be underinsured. These people could lose out when making a claim, for example, if someone with £42,000 of contents insures them for just £21,000, they have only bought half of the cover they really need and are therefore unlikely to receive a full settlement in the event of a claim. Even if the claim was for a smaller amount, perhaps £800 for a new TV and video, they may still not receive the full amount.

It is also important to have enough home contents cover for all new possessions received as Christmas presents. Even those extra CDs that were Christmas gifts can bump up the value of home contents.

Steve Kingshott, Head of Home Insurance at MORE TH>N, said: “It’s very easy to underestimate the value that January sales bargains can add to your home contents, especially if you are buying high value goods such as laptops or plasma screen televisions. We strongly advise people to carry out a quick inventory after Christmas and the sales to find out if they have enough contents cover for all their possessions, new and old.”

Home contents insurance from MORE TH>N includes:

Automatic limit of £60,000 worth of contents cover.
10% extra cover at Christmas.
Free legal advice helpline.
24 hr emergency freephone helpline.
Free delivery of most replacement goods if the originals are stolen.
Personal liability cover for up to £1 million.
Emergency cover of up to £150 for urgent repairs and overnight accommodation.
Great flexibility

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