Many people underinsure their UK home contents

A new study from AXA UK reveals that the average UK home contains nearly £30,000 worth of possessions, but many people severely undervalue their contents
Only a third of consumers have complete understanding of what their home insurance does and doesn’t cover
Three in 10 adults have damaged or lost something, only to then discover it wasn’t actually covered by their contents insurance

Research from AXA UK¹ has revealed that the average UK home contains nearly £30,000 worth of possessions – but only a third have a complete understanding of what their home insurance does and doesn’t cover.

AXA UK’s study of 2,000 adults found Baby Boomers estimate they have the most possessions to the tune of £36,166, while Gen Z have the lowest with £21,744.

And the average one-bed flat is estimated to contain £15,713 and the average four-bed house has £41,361 worth of goods.

But the average adult adds to their belongings, purchasing around £1,000 worth of impulse buys every year.

It comes as home insurance experts at AXA revealed many 'severely undervalue' the items they acquire over time.

And one in 10 of the adults polled admitted that when it comes to contents insurance, they tend to just buy the cheapest policy and hope to never need it.

Although the average UK home is estimated to house almost £30,000 worth of contents, we know that many people severely undervalue their belongings and run the risk of being left unprotected.

While getting a good price for your insurance is important, it’s amazing how many possessions we can acquire over time so make sure your policy covers everything you need it to.

Tara Foley, CEO at AXA UK Retail

Despite the older generation having more possessions, they are less likely to know exactly what their contents insurance covers than savvy Gen-Zers.

The results also found men are slightly more likely than women to have items in their home which they consider to be irreplaceable or priceless.

The most common of these items was deemed to be photos, followed by jewellery and other pieces of art.

But three in 10 adults, polled via OnePoll, have damaged or lost something, only to then discover it wasn’t actually covered by their contents insurance.

On average, Brits believe they pay out £578 annually on different kinds of insurance, including for their home, car and pets.

Those aged 25-34 spend the least of all age groups, at just over £501 – with people aged 55-64 paying the most annually, around £615 per person.

According to AXA UK, people should specify expensive, high-risk items like engagement or wedding rings, laptops and watches on their insurance policy because they’re easily stolen and resold.

People also often don’t know how much inherited items like antiques, artwork or jewellery are worth, so it’s important they get these valued and tell their insurer too.

“It’s easy to miss things when it comes to insurance, after all you often only know you need it when it’s too late,” Tara added.

“It’s worth, every so often, taking an inventory of the things in your home and checking your home and contents insurance is up to date.

“And if you’re not sure whether your insurance covers things like lost engagement rings or smashed phone screens – check your policy or get in touch with your insurer.

“That peace of mind is well worth a small amount of ‘life admin’ every 12 months or so.”

AXA UK has developed a contents insurance calculator so customers can get an idea of what their possessions are worth.

The top five things Brits forget to add to their insurance

Laptops and devices
Wedding/Engagement rings
Watches
Designer handbags
Inherited items like antiques, artwork and jewellery

¹ Research carried out by OnePoll on behalf of AXA UK between 11 to 14 March 2022, among a nationally representative poll of 2,001 UK adults.

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Legal notes

About AXA UK

AXA Insurance UK plc registered in England and Wales under registered number 078950 and authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority under Financial Conduct Authority registration number 202312. Registered office is 20 Gracechurch Street, London, EC3V 0BG.

AXA UK is part of the AXA Group, a worldwide leader in insurance and asset management, with 147,000 employees serving 94 million clients in 50 countries. In 2023, IFRS revenues amounted to Euro 102.7 billion and underlying earnings to Euro 7.6 billion. AXA had Euro 844 billion in assets under management as of December 31, 2023.

In the UK & Ireland, AXA operates through a number of business units including: AXA Insurance, AXA Health and AXA Ireland. AXA UK & Ireland employs around 10,000 staff.

Important legal information and cautionary statements concerning forward-looking statements

Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause AXA’s actual results to differ materially from those expressed or implied in such forward looking statements. Please refer to Part 5: “Risk Factors and Risk Management” of AXA’s Universal Registration Document 2022, for a description of certain important factors, risks and uncertainties that may affect AXA’s business and / or results of operations. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise, except as required by applicable laws and regulations.

Average UK home contains nearly £30k of possessions, but many people risk being underinsured

The top five things Brits forget to add to their insurance