Homeowners are being urged to go over their home contents policy to avoid underinsurance.

The call comes from rural insurer NFU Mutual, which recently conducted a survey which found 65% of homeowners are still estimating the value of their contents.

The insurer warns that homeowners failing to insure contents for the correct amount could lose out if they need to make a claim. When a claim is made the provider will apply an insurance term known as ‘average’ or ‘underinsurance’. This means they will reduce the claims payment by the percentage that the contents are underinsured.

32% of respondents to NFU Mutual’s home insurance survey said they had never amended or reviewed their policy.

John Kenny, chief claims manager at NFU Mutual, said: “Updating insurance policies on a regular basis means homeowners can be confident they are getting the right level of cover – there’s nothing worse than paying for something that won’t work when you need it most.