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Seven million homes lack sufficient insurance coverage

Almost seven million households have an insufficient contents insurance policy, according to insurer Direct Line.

Homeowners could be scaling back on the cover they're taking out because their finances are strained, claims Andrew Morrell, head of home insurance at Direct Line. "There is no doubt that recession-hit Brits have a lot on their minds at the moment - but the importance of home contents insurance shouldn't be underestimated."

"No one wants to think about the prospect of losing all their possessions," added Mr Morrell. "Unfortunately it is far too easy to turn a blind eye to the true value of your home's contents and grossly underestimate the level at which your insurance should be set - thereby putting your belongings at risk."

This presents an opportunity for people with jobs in insurance companies specialising in home contents, because they could use this information to their advantage and help people find a policy that offers maximum coverage at the best price.

In fact, households are under-insured by an average of £20,000, reports Money Highstreet. It was revealed that the average home has furniture worth £4,000; jewellery worth £1,800 and clothes worth £2,000.

It's thought that when people inherit items, they're unaware of their value, which is another reason why their insurance policy is insufficient.

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