Avoid getting caught in Xmas under-insurance trap

Homeowners are being warned not to inadvertently exceed their contents insurance over the Christmas period.

Halifax says that people often unwittingly exceed their contents allowance offered in the terms of their insurance policies over Christmas as they accumulate expensive presents for the big day.

A number of insurance companies increase their level of cover over the Christmas period, but Halifax warns that many households become underinsured when this ends due to the expensive presents received by the immediate family.

Vicky Emmott, senior underwriter Halifax Home Insurance comments, said that Halifax policyholders can relax at Christmas because "it offers unlimited contents cover all year round".

"Although some insurers will increase contents cover over Christmas this still leaves the problem of re-evaluating your contents in the New Year," she added.

The insurer also urges anyone planning to hide Christmas presents bought in advance at a friend, relative or neighbour's home to check that their home insurance provider will cover their contents away from the home.

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