Millions of UK homeowners could be under-valuing possessions and family heirlooms by tens of thousands of pounds according to new figures released today.
Millions of UK homeowners could be under-valuing possessions and family heirlooms by tens of thousands of pounds according to new figures released today.
Norwich Union has carried out a series of “wealth checks” on their high net-worth customers. An investigation of 100 customers* revealed they were under-insured by a total of Ł8.5 million and the average customer under-insured by Ł85,000.
One wealth check revealed a home owner had under-valued their fine arts and antiques by a massive Ł1.4 million.
The wealth checks are a unique service offered free to selected customers of Norwich Union’s ‘Tapestry’ product. They are carried out by professional independent valuers, Quastel Associates.
Based on the wealth check findings, Norwich Union has compiled a list of top ten under-insured valuable contents.
- Clothing & personal effects (like designer glasses and golf clubs)
- Antiques
- Curtains, carpets and soft furnishings
- Collections (including wine & stamps)
- Glassware and ceramics
- Original works of art
- Light fittings, including chandeliers
- Inherited items, especially furniture and pictures
- Christmas decorations
- Pictures and picture frames (which are sometimes worth more than the pictures they frame)
Norwich Union’s ‘Tapestry’ home insurance policy was developed for Britain’s estimated 6 million** high net worth (HNW) population, after concluding that these customers needed something special and bespoke to suit their individual needs.
A typical HNW customer would have Ł125,000 in home contents, half a million pounds-worth of buildings cover plus Ł50,000 worth of fine art and jewellery. But plenty more people could benefit from this policy as the current entry level is Ł75,000 worth of contents or Ł250,000 buildings cover.
The wealth checks are offered free to customers when the underwriters believe there’s a strong likelihood of under-insurance or where a valued customer knows they need professional help to value their contents and their premium is over Ł1000.
Nigel Wembridge, Norwich Union’s Tapestry underwriting manager, said:
“The wealth checks reveal that the average affluent client is under-insuring their possessions by nearly 70 per cent.
“The wealth checks mean that the client can be properly insured for the correct amount and, in the event of a claim, receive the true value for their possessions. It also means that Norwich Union is able to price the policy more expertly knowing exactly what kind of contents they own.
“It comes as quite a shock to most people to know that normally fine art and antiques are priced at least 25% cheaper than general contents and in high theft areas are often more than 50% cheaper.”
John Weallans, chartered arts and antiques surveyor from Quastel Associates, said: “When we walk into a client’s house to undertake an insurance wealth check it can sometimes end up like a scene from the Antiques Roadshow. People get quite excited when we reveal the value of some of the finer things they own. We look at everything from books to garden furniture. Often they have no idea how much that simple oak table they’ve had for decades has increased in value or how much all those shoes and suits in the wardrobe are really worth.”
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For further information, please contact:
Rebecca Holmes at Norwich Union on 01603 354346/07800 690731
Emilie Lien at Lexis PR on 020 7908 6421 elien@lexispr.com
Notes to editors
*The wealth check figures come from an average sample of 100 wealth checks carried out between June 2005 and January 2006 by Quastel Associates on behalf of Norwich Union.
**Six million is estimated number of the population who would be eligible for a Norwich Union High Net Worth policy. That is calculated by number of people estimated to have liquid assets of Ł30,000 or above. This figure is expected to rise to over 7m by 2008.
Source: Datamonitor
About Tapestry
- Dedicated underwriters and claims teams
- Normally warranty free - No alarm or locks endorsements insisting when and how they are used.
- Home emergency cover
- High single article limits – before items need to be specified or require a valuation
- Identity fraud cover
- Students personal possessions covered at University Ł5,000 per person
- Specialist fine art cover
About Norwich Union Insurance
- Norwich Union is the UK's largest insurer with a market share of around 14 per cent
- With a focus on insurance for individuals and small businesses, Norwich Union insures:
- one in five households
- one in seven motor vehicles
- around 800,000 businesses - Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.
- Aviva, Norwich Union’s parent company, announced its acquisition of the RAC in 2005. The acquisition brings together the RAC's powerful brand and customer base with the expertise of Norwich Union Insurance – a market leader in motor insurance.
- Norwich Union's news releases and a selection of images are available on the Aviva internet press centre at www.aviva.com/media.