According to Sainsbury's Bank taking out the minimum home insurance amount could put policy-holders at risk of being under-insured or having their claim turned down.
Sainsbury's commissioned research that found that one in three insurance policies has a minimum cover level of £15,000 - and that many consumers take out this minimum level as a way of cutting costs.
But research from Direct Line has found that even the contents of a small home (a one/two bedroom flats or terraces) is worth £15,000-£20,000.
Additionally, claiming near the upper end of a policy increases the risk of it being declined. Sainsbury's estimates 350,000 claims will be denied this year alone.
Robert O'May, Sainsbury's Bank home insurance manager, commented: "It is very easy to under-estimate how much your home contents are worth. £15,000 may sound like a lot of money, but when the value of all your belongings is added up, it can easily be double this or more - especially if you are living with someone or have a family."
Sainsbury's points out that by shopping around consumers can often find policies with greater amounts of cover for the same cost.To read more about home insurance, click here.
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