When working with clients who have a high net-worth, ensuring that their homes are adequately insured is critical. While many clients focus on rebuilding costs and visible big-ticket items, it’s surprisingly common for everyday possessions to be undervalued or even overlooked entirely. Brokers play a key role in guiding clients to make informed choices around insurance protection that truly reflects the lifestyle they’re protecting.

Why contents are often undervalued

Our Private Client team regularly find that clients unintentionally undervalue the contents of their homes. Items as diverse as handbags, designer watches and even sneaker collections are frequently overlooked. While each piece might seem modest in isolation, together they can represent a significant value – and valuing these items is critical in the event of a claim. 

Your clients might forget to declare certain sentimental items of value that they have accrued over the years. This can include anything from luxury and designer furniture, soft furnishings, rugs, kitchenware, electrical goods, and collectibles. The replacement value of these items, especially at today’s retail prices, can be far greater than clients expect. Without regular updates to their sums insured, clients could face the emotional and financial impact of a shortfall when they need their insurance most. Start by having an initial valuation to ensure everything is covered and encourage clients to review every few years as their valuable items and contents may change in value.

Ensure you get the right valuation

One of the most effective ways to secure accurate cover is through a professional valuable items and contents valuation. This type of service can offer a comprehensive inventory, complete with photographs, descriptions, and a category-by-category breakdown that can help ensure full replacement in the event of a claim. 

We collaborate with reputable valuation firms such as Doerr Dallas Valuations across our Private Client insurance offering. Hiring a company like this will reduce the stress of a client completing an inventory themselves and will make the process simpler, should a claim ever arise. Rachel Doerr, the MD of Doerr Dallas Valuations explains the need for accuracy in valuations relating to home contents underinsurance:

“When clients buy items for their homes, they often forget to add them to their insurance policies, meaning they remember initial purchase costs but years can pass and the value of items can increase. Especially with items like Jewellery.

The difference between good and great can be significant, especially with high end furniture, furnishings and even less exciting items rising exponentially in value, it is vital to have them correctly valued to ensure that your clients aren’t left trying to replace modern items at years old replacement figures. 

What an item is worth and what it would cost to replace, are very different. At Doerr Dallas we see huge levels of under-insurance which is not necessarily intentional, but just not thought about until it is too late. Gifts, Inherited pieces, passion purchases such as Memorabilia are often overlooked or the person responsible for the insurance is not fully aware of what items would cost to replace.

In the event of a loss, a detailed valuation will assist you with any claim and ensure the process is a smooth one. At an emotional time, it takes the stress away and ensures the cheque your client receives will replace their treasured possessions.”

We will work with you to ask the right questions during appraisals and help you have the right conversations with your clients to fully understand what may need to be included for full accuracy. 

What about tenant improvements?

Underinsurance doesn’t just apply to the contents of a primary residence. Many of your private clients may own more than one property – be it a second home, a holiday property, or even one or two professional lets. In these cases, tenant improvements are another area where underinsurance can become an issue. 

Tenant improvements refer to changes the leaseholder has made to a property that may not be covered by any landlord’s policy that might be in place. This could include installing new kitchens or bathrooms, flooring, lighting, or even structural refurbishments. It’s essential that we understand the full extent of these changes to get the right level of insurance in place.

Our Private Client policy automatically includes cover for tenant improvements up to 10% of the contents sum insured. Remember, this is different to a landlord’s insurance policy and we recommend an in-depth conversation with your clients to ensure that: 

• The full value of these improvements is understood and documented 
• It is clear who is responsible for insuring which parts of the property (usually defined in the lease agreement) 
• They understand the level of cover provided by Brit in their policy 

This ensures that, in the event of a claim, there are no unwelcome surprises. As part of our appraisal process, we’ll ask about tenant improvements to make sure the correct value is included in the policy.

Helping you to protect the important
things in your client’s lives

We understand that your clients see their homes as a reflection of their life, tastes, and personal investments. Underinsurance has the potential to turn what might be an already difficult moment into a devastating one, both emotionally and financially. 

By proactively guiding clients to assess their valuable possessions, contents and any upgrades they’ve made to properties, you can offer a level of service that goes far beyond the policy document. You’re helping them protect the things that matter most to them. We’re here to support you through these important conversations. From valuations to appraisals, we offer expert guidance and personalised support to ensure each of your client’s cover truly reflects their lifestyle.  

Let’s work together to help your clients avoid the risks of underinsurance – and give them the peace of mind that comes with knowing everything is properly protected. If you want to find out more, get in touch with our private client team.