The average 46-year-old consumer keeps more than 40,000 pounds worth of possessions in their home, according to a new report.

Published by insurance services provider More Than, the Lifesworth study aimed to show how the worth of personal items fluctuates among different ages as time passes and individual circumstances change. It noted that despite having the highest value possessions, those in their 40s often failed to realise how much their personal property is worth. The firm found that although most people in this age bracket said they thought their belongings were worth 28,917 pounds on average, the true figure was actually 40,125 pounds, meaning that consumers were underestimating the value of their home’s contents by more than 11,000 pounds.

As such, More Than advised homeowners of the need to make sure their home insurance policy would cover their possessions in the event of theft, loss or damage. In its findings, the company found that consumers spend an average of 13,000 pounds on personal items every five years, a figure which it said demonstrated the need to make sure cover was updated on a regular basis to avoid the risk of being underinsured. For those who have found themselves without adequate cover when making a claim, it may be necessary to pay for replacements using savings or personal loans.

Of those interviewed in the study, more than half (56 per cent) said they had no idea how much their personal belongings were worth, while approximately a fifth have never given thought to the value of such items. Making sure that home insurance cover is up to date and representative of the worth of items stored in the home may be of particular importance to those in their late 20s. The firm revealed that of those people under the age of 40, 28-year-olds with few financial commitments had possessions of the highest value, averaging 33,166 pounds.

In an effort to assist people in evaluating the value of the contents of their homes, More Than has launched a Lifesworth Calculator which gives current monetary valuations for many household items.

Commenting on the findings of the report, said: “Brits work hard enough to buy things but by not keeping track of what they own, they run the risk of being underinsured. The report shows that on average, people spend 13,000 pounds every five years on things they keep in their home so home contents policies need to be checked and updated regularly as a result. If people are in any doubt as to whether their current level of home contents insurance covers them, I would encourage them to log on to the Lifesworth calculator to clarify the total value of their belongings. At More Than we are keen to do more by helping householders keep up with the rising cost of their home possessions.”

For those looking for an effective way to fund new purchases and meet the additional costs of taking out full home insurance, taking out a personal loan may prove an effective option. Being selective when considering insurance provider may also be advisable after a recent report by Chelsea Building Society showed that many Britons are in the dark about the level of cover they are afforded by their various policies.

1 Stop Finance Shop providing you with breaking personal loans news.