The latest survey by the Association of British Insurers (ABI) concludes that the average UK home has around £35,000 worth of contents, from jewellery to electronic gadgets, bicycles to power tools. The ABI also estimates that about £266 billion of assets in homes and flats are NOT insured, or under-insured, when it comes to risks like theft, fire and flood.
One problem with home insurance is that it requires policyholders to update their insurer on the NRV – New Replacement Value – of things like furniture, jewellery, cameras, racing bikes, electricals etc. If you don’t keep up to date with these valuations, then when you make a claim you may find that high value items are not covered, or you only receive a percentage of the cost of replacement.
The ABI also found that about 25% of all UK householders have NO contents insurance at all.
New start-up buzzvault, who are looking to disrupt the home insurance market with their smartphone app based service, offered a comment on the ABI survey;
Becky Downing, CEO buzzvault said; “The ABI’s research underlines the chronic issue of underinsurance in the home insurance market which buzzvault is setting out to tackle.
“An overly complex application process along with lack of transparency and lack of clarity over exactly what needs to covered leads to a poor customer experience from start to finish.
“When I was burgled a few years ago, I recovered about 50% of what I lost because it turned out I was underinsured and hadn’t kept a record of what I had. Like many people, I had loyally auto-renewed each year and assumed that my insurance would be there for me in times of difficulty. It was a horrible experience and made me realise the value of home contents data. It allows house-holders like me much greater control of their insurance cover.
“Buzzvault insurance will fix the fundamental problems that have blighted the home insurance market through video survey technology, customer data and human skills. This unique blend of skills and abilities will set us apart from any other home insurance proposition in the market and will enable us to deliver the first personalised home insurance policy based on a customer’s digital inventory of their possessions. This will be underwritten by one of the world’s leading re-insurers.
“Crucially, we will know exactly what we are insuring. This immediately addresses the risk of underinsurance whilst ensuring customers receive an efficient and stress free service at point of claim. Buzzvault will revolutionise the home insurance market.”