Find out where your insurance coverage has dangerous gaps. Assess your exposure across five key risk areas — life, income, health, property and liability — and see which gaps to close first.
Rate your current protection in each area (1=none/critical, 5=fully covered).
Most UK adults are over-insured in some areas (paying for insurance they do not need) and significantly under-insured in others (exposed to risks that could be financially catastrophic). The most commonly underinsured areas: income protection (only 12% of workers have it), life insurance when dependants exist, and business liability for self-employed people. A coverage gap audit identifies where to prioritise.
Only 12% of UK workers have income protection insurance, yet the average working-age person has a 1 in 4 chance of being unable to work for 3+ months before retirement due to illness or injury. State support (Statutory Sick Pay of £116/week for 28 weeks, then Employment Support Allowance) is wholly inadequate for most households. IP is particularly critical for self-employed people with no employer sick pay.
Research shows the average UK household underinsures contents by 40%. Most people insure for £30,000–£40,000 when the true replacement value of clothing, electronics, furniture, appliances, kitchenware, books and jewellery often exceeds £60,000–£80,000. In the event of total loss (fire, flood), being underinsured by 40% means receiving 40% less payout relative to actual losses.
Essential insurance for most adults: (1) Buildings insurance if you own a home (legally required by mortgage lenders); (2) Contents insurance (most people underestimate contents value); (3) Life insurance if you have financial dependants; (4) Income protection if you would struggle without your income for 3+ months; (5) Vehicle insurance if you drive (legally required). The most undervalued: income protection — especially for self-employed people with no employer safety net.