BLOG: What's under the tree this Christmas?

Hear from Amie Wright, our Private Clients Team Manager

It’s the most wonderful time of the year and despite a slower start to our Christmas spending than previous years thanks to a second lockdown, generous Brits are still expected to spend billions on gifts of their loved ones, from pricey jewellery to the must-have PS5 (if you’re lucky enough to get your hands on one).  

This means that many households are likely to have hundreds if not thousands of pounds worth of goods sitting under their Christmas trees in the run up to 25th December, a fact that doesn’t go unnoticed by thieves.

Beware the Grinch

A property packed full of brand-new luxury items is an attractive proposition for any unscrupulous burglar, and the financial difficulties faced by many this year could lead to an increase in opportunistic thieves trying to make some quick money.  And for clients whose contents insurance arrangements aren’t up to date, this could lead to a real nightmare before Christmas, as they may find their pricey goods exceed the limits of their policy leaving them unable to claim the full value.

So, although your clients may be distracted by other matters during December; “Have I ordered that turkey?”, “Who’s collecting great grandma?” “Have we got enough fairy lights up?”, the festive season presents an important opportunity for you to remind them of the importance of reviewing their contents insurance to ensure that the risk accurately reflects the value of the possessions in the home.  Underinsurance is a real concern, and many clients aren’t aware of the ramifications should they have to make a claim.

You’ve made your policy, check it twice

Many of your clients won’t need to make any adjustments to their contents insurance policy to protect their new purchases from theft as they may already have a sufficient cover limit in place; but it is vital to check their existing policy, paying careful attention to any limits or exclusions that could affect their claim.  If they find that their policy doesn’t quite meet their needs it might be time to extend the cover.  

Although Government guidelines may well prohibit any of us from venturing far over the Christmas break, many clients could benefit from adding ‘away from home’ cover to their contents insurance policy if they are likely to be travelling around with their expensive gifts.

A quick policy check will reveal whether their insurer automatically increases its contents insurance limits over the festive period, some do but many don’t; a five minute break in festivities to carefully read the policy terms will provide valuable peace of mind to the client or prompt them to invest in the extra cover they need to see them through to the New Year.

Help your clients have a very merry Christmas

As the countdown to Christmas begins, you could provide your clients with that additional support, emphasising the dangers of being underinsured and the possibly expensive consequences should they have to make a claim.  You can take steps now to prompt them to review their existing policy and advise them on how to temporarily increase their limits.

You could also remind them of the importance of keeping their home secure during the winter months. 

Before paying out in the event of a claim, most insurers will want proof that their policyholders have taken steps to secure their home.

Simple actions - such as ensuring all doors and windows are locked, installing burglar alarms and moving car and house keys away from the letterbox can all act as proof that your client has taken ‘reasonable care’ of their property. 

If you find that your clients do need to revise their contents insurance policy to cover their Christmas gifts, head straight to our brokerage platform for cost-effective cover. 

iprism is proud to provide specialist high value home insurance for owners of high value properties. This cover offers high single article limits of £15,000 for jewellery and watches and £25,000 for art and antiques as standard. Our underwriters can tailor the policy according to your clients’ own needs and the cover offered automatically includes worldwide all-risks cover.

And if you visit our portal from 1st December, you can take part in our Christmas Hunt for a chance to win a prize, click here to log in.