High gold prices 'leaving homes underinsured'
Personal insurance
3rd February 2010
Many households do not have enough cover under their UK insurance policy as they are failing to take rising gold prices in to account.
This is according to a study by RIAS, which revealed that jewellery and other valuable items are not being factored in properly when home and contents products are purchased or renewed.
Research by the firm suggested that UK households could be underinsured to the tune of £4.9 billion as a result of gold leaping 25 per cent during the past year, with those over 50 particularly at risk of being underinsured.
Additionally, an estimated 16.6 million people (61 per cent) have never had possessions valued for insurance, despite the average home in Britain holding £1,189 worth of gold items.
Commenting on the Golden Age study, RIAS managing director Janet Connor said: "By reviewing the value of individual items every two years and updating policies as necessary, consumers can eliminate the risk of being under or over-insured."
UK gold prices have risen by around 21 per cent annually since 2005.
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