Direct Line has revealed that almost 50% of us are guilty of making the understandable mistake of undervaluing the contents of their property, with such a practice leaving homeowners open to financial ruin if they ever need to claim on their home insurance policies.

According to Direct Line, just over a quarter of us have under-insured items ranging from designer clothes to the latest technological gadgets and the top of the range luxurious leather sofa to the total sum of £20,000. This statistic may sound alarming but it actually sounds pretty positive when placed alongside another figure released by the insurance company. One fifth of households in the UK have no sort of home contents cover at all, despite the fact that possessions within these households hold an average overall value of £14,000.

The reasons behind the astounding level of undervaluing that seems to be going on in many British households are fairly simple. Never mind the fact that many Brits don’t know the precise value of many of their possessions, or that some homeowners don’t take into account inherited items, the more pressing fact remains that many individuals considering taking out home insurance policies consider their expensive items in isolation. However, incidents such as widespread flooding or house fires can wreak havoc across an entire property, wiping out all valuable possessions within minutes.

By taking some time and care when taking out a new policy, and of course ensuring that you actually do take out an insurance policy, you should be able to avoid the financial pitfalls that can arise from under-valuations.

Homeowners across the UK are putting both their lives and their finances at unacceptable levels of risk by not remaining vigilant about the threat posed by accidental fires. That, at least, is the opinion of those in the government responsible for launching Electrical Fire Safety Week, which promoted awareness of electrical fire hazards in the average home during the last week of January. Sir Ken Knight, the chief fire and rescue adviser for the government, explained that it’s extremely “important that everyone makes sure that their electrics are in good working order and are used properly”.

With hazards such as overloading plug sockets and using worn or damaged cables having the potential to result in loss of life, the importance of being well-informed of the risks is all too apparent. It is thought that over 40 people died and 4,000 individuals suffered injuries ranging from minor to severe following electrical fires in 2007.

However, even minor electrical fires can prove to be utterly devastating, with the financial implications often extreme. Around 60% of accidental fires reported in 2007 were blamed on electrical equipment, with extensive home insurance claims from those fortunate enough to have policies not unusual following such an incident.

The idea behind Electrical Fire Safety Week is garnering widespread praise, with Allianz Engineering just one company to offer support to the initiative. Allianz Engineering used the week to encourage companies of all sizes to have their electrical appliances checked regularly, since it is of course not just homeowners at risk of suffering the ill effects of electrical fires.