Yes, you should review your contents insurance before Christmas shopping begins. The festive period typically brings a significant increase in the total value of possessions in your home, from gifts stored before wrapping to new electronics, jewellery, and clothing. If your policy’s cover limit reflects your home’s value in January but not December, you risk being underinsured when theft, fire, or accidental damage is statistically more likely.

Why Christmas shopping changes your insurance needs

Between November and January, UK households often accumulate thousands of pounds worth of new items. Presents bought in advance, festive decorations, and increased food and drink stocks all add to the total value of your contents. According to the Association of British Insurers, many policyholders underestimate the replacement cost of their belongings and only discover the shortfall when making a claim (ABI, 2026).

If your contents insurance has a cover limit of £30,000 but the actual replacement cost in December is £35,000, you will not receive full compensation for a total loss. Insurers settle claims proportionately when you are underinsured, meaning you bear part of the loss even when the claim is valid.

Key things to check now

Cover limit. Add up the replacement cost of everything you own, including clothing, furniture, electronics, and appliances. Do not forget items stored in sheds, garages, or lofts. MoneyHelper recommends going room by room and using a home contents calculator to avoid guesswork (MoneyHelper, 2026). If your total exceeds your current limit, contact your insurer to increase it before you start shopping.

High-value items. Many policies have single-item limits, typically £1,000 to £2,000. If you plan to buy or receive jewellery, watches, or electronics above this threshold, you may need to specify them separately and pay an additional premium. Check your policy wording and ask your insurer whether items must be listed before purchase or can be added retrospectively.

New-for-old or indemnity basis. New-for-old (replacement as new) policies pay the cost of a brand-new equivalent item. Indemnity policies deduct depreciation, leaving you with less. If your policy is indemnity-based and you have not reviewed it recently, consider switching to new-for-old cover, especially if you are buying expensive items that lose value quickly.

Excess. Confirm the excess (the amount you pay toward any claim). A £500 excess on a £600 claim means you recover only £100. If your excess is high, weigh the cost of reducing it against the likelihood of a claim. Citizens Advice notes that a lower excess increases your premium but reduces out-of-pocket costs if something goes wrong (Citizens Advice, 2026).

Read also: How to Protect High-Value Items and Jewellery with Home Insurance

Accidental damage cover. Standard contents policies cover theft, fire, and storm damage but often exclude accidental damage unless you pay extra. If children or guests will be in your home over Christmas, accidental damage cover can be worthwhile. Verify whether it is included or available as an add-on.

What to do if you are underinsured

Contact your insurer and request a cover increase. Most insurers adjust limits mid-term and charge a pro-rata premium for the remaining policy period. If the increase is significant, shop around: a new policy with adequate cover may cost less than topping up your existing one. Switching is straightforward, but avoid a coverage gap by ensuring the new policy starts before the old one ends.

Next steps

Review your policy documents, calculate your contents’ total value, and contact your insurer if your cover limit is too low. Foundational guidance on managing household financial risks, as covered in Samuel Smiles’ Thrift, reminds us that preparation avoids regret. Update your cover now, before the shopping begins, rather than discovering the shortfall in January.

Disclaimer: This article provides general information only and is not regulated financial advice. We are not authorised by the Financial Conduct Authority. Cover, exclusions, and policy terms vary by insurer and individual circumstances. Always read your policy wording and key facts document carefully, and consider speaking to an FCA-authorised insurance adviser for guidance tailored to your personal situation.