More than 80% UK affluent under insured, claims specialist broker

London 29 May 02: More than 80 per cent of the UK’s affluent are under insured on both collectibles and general contents according to up-market specialist broker Stackhouse Poland. Research by the company, one of the UK’s leading specialist private client brokers, shows that those who do not have specialist cover are under insured on average by between 30 and 50 per cent, putting them at risk should fire, theft or accident occur. Many of these are as much as 100 per cent undervalued on their contents. Ironically the research also demonstrates that many are also paying too high a premium. Stackhouse Poland bases its figures on analysis of a sample of 200 new clients who have had a personal insurance review in 2002, of the one million people in the UK estimated to have a property valued at £300,000 plus and contents at £75,000 plus. The results show that 90 per cent base their contents insurance on out of date valuations or estimates, without accurate information or expert advice.
The value of antiques and collectibles has risen faster than the retail price index in the last five years and since 2000 has soared by nearly 20 per cent, with a seven per cent rise in 2001 alone (Antique Collectors Furniture Index for 2001). Experts predict that this momentum will continue, fuelled by concerns over stock market volatility in the face of global economic change.Stackhouse Poland Marketing Director Keith Hester explains: "We were not surprised when our research showed a high level of frustration caused by inappropriately structured policies where cover was not tailored to meet individual needs. However, we were shocked to find such a high level of under insurance at such high premiums. Our research also revealed that the reason people were not aware that they were under insured was due to complex and confusing policy structures, often with hidden exception clauses.

2"We looked at a broad mix of people ranging from high earning professionals to dedicated collectors and owners with high quality possessions. Sadly the majority did not receive quality service from one named individual, instead experiencing an impersonal call centre operation. To make matters worse, while they were also paying too high a premium, they still did not enjoy peace of mind in the event of loss. It is of great concern that such a high percentage are not offered appropriate policies by appropriate insurers that would deliver cost savings as well as service. By using specialist underwriters it is possible to provide highly effective cover and service at 0.25 per cent (or £250 for every £100,000 insured) of value for antiques and collectibles compared to one per cent (or £1,000 for every £100,000 insured) of value for general contents. Anyone paying more should seek specialist independent advice".