Inflation and Home Insurance

Home insurance provides invaluable protection against unforeseen events that could damage or destroy your property. However, as time passes, the value of your belongings can change due to inflation, potentially leaving you underinsured if your policy’s sums insured aren’t periodically reviewed and adjusted. At Brunel Insurance, we emphasise the importance of keeping your cover up-to-date to ensure the right protection for your home and possessions.

The Influence of Inflation

Inflation is a natural economic occurrence where the cost of goods and services increases over time. This rise in prices affects the overall value of your possessions, making it essential to regularly reassess the sums insured on your home insurance policy.

Importance of Accurate Sums Insured

Having accurate sums insured is crucial for adequate cover. Underestimating the value of your belongings can lead to being underinsured, leaving you financially vulnerable in case of loss or damage. Conversely, overestimating can result in unnecessarily high premiums.

Reviewing Your Policy

Periodic reviews of your home insurance policy are essential to ensure that your sums insured accurately reflect the current value of your possessions. Here are steps to keep your cover up-to-date:

1. Regular Assessments: Conduct assessments of your belongings to determine their current value. Consider factors like inflation, market trends, and any acquisitions or disposals of high-value items.

2. Professional Valuations: For high-value or unique items, seek professional appraisals to ascertain their current worth accurately.

3. Communication with Brunel: Keep an open line of communication with us. Tell us about any significant changes to your property or possessions that might impact your cover requirements.

4. Policy Renewals: Use policy renewal periods as a reminder to reassess your sums insured. Take advantage of these times to update your policy according to any changes.

Protecting Your Investment

Underinsuring your home and possessions could leave you exposed to substantial financial losses in the event of a claim. It’s crucial to take proactive steps to protect your investment:

1. Regular Updates: Ensure that your insurance policy evolves with changes in the value of your belongings. Regularly update your sums insured to align with inflation and market value fluctuations.

2. Specify High-Value Items: Consider the cover for high-value items, such as jewellery, artwork, or antiques, which might require dedicated limits within your home insurance.

3. Policy Reviews: Don’t wait for a claim to discover you’re underinsured. Periodically review your policy to account for inflation and any significant changes in your assets.


At Brunel, we understand the dynamic nature of asset values and the importance of keeping your home insurance policy up-to-date. With inflation affecting the value of your belongings, it’s crucial to review and adjust your sums insured regularly. By doing so, you help to ensure the cover remains adequate to protect your home and possessions against unforeseen events.

Contact us today to learn more about how we can help you update and tailor your home insurance policy to reflect the current value of your assets. Protect what matters most—your home—with confidence.