Avoid underinsurance in December

British consumers may find themselves underinsured this Christmas as they stock up on expensive festive gifts.

Many insurers offer a free seasonal increase in contents cover, but this expires after the festive period and consumers can end up underinsured, as many expensive presents remain in the home after Christmas. Halifax Home Insurance is warning Brits to check their contents insurance carefully to make sure they are covered for the value of presents.

Some insurers offer unlimited contents insurance to policyholders and Halifax cautions homeowners to check that they are not unwittingly exceeding the contents allowance offered in the terms of their insurance with their Christmas shopping.

Policyholders are also advised to check that they are covered for any presents stashed away at the home of a friend, relative or neighbour, while an estimated seven million households in the UK have no home contents insurance at all.

Vicky Emmott, senior underwriter at Halifax Home Insurance, commented: "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: "With high-value items such as iPods, PSP's and children's favourite Bandai Tamagotchi likely to feature on letters to Santa this year a fruitful Christmas could boost the value of your home contents by hundreds or thousands of pounds."