With under insurance such a recurring topic, we’ve asked Cheshire hypnotherapist John McKenzie to provide an insight into the psychology behind estimating the value of our possessions. By explaining the reasons people tend to make mistakes, and giving practical steps to overcome them, our aim as always is to prevent our clients falling victim to under insurance.
The Sydney Opera House was due to open in 1963 at a cost of $7 million. Instead it opened at over 14 times that cost and a decade late. The effects of that were embarrassing – but if you make the same mistake about estimating your contents insurance the consequences can be much worse than just embarrassment.
To demonstrate why we’re so bad at estimating costs let’s try an experiment now. Choose either the kitchen or the tool-shed, and list all of the items in it. When you’ve finished move onto the next paragraph.
Now you have your list keep it in front of you and take yourself step-by-step through making a meal or doing a DIY job in the house. The only rule is that you can only use the items on your list. Try it now before reading the next paragraph.
What by far the majority of people find is that they soon come across something that they can’t do, because they’ve overlooked something. Whether it’s a measuring spoon or a spanner, imagine the frustration of that effect being repeated in every task you do, in every room in your house.
The psychology behind our trouble in estimating costs boils down to three reasons:
I’d suggest five ideas to bear in mind:
If this has prompted you to think about your insurance, or to more realistically value your belongings, then the next step would naturally be to contact the experts at County Insurance for advice and a quote.
If Cheshire hypnotherapist John McKenzie has got you thinking about your insurance and you have some questions for our team, don’t hesitate to get in contact with us. We will be more than happy to find you the right level of cover at a great price. Call our expert team on 0333 400 2316 or you can visit your local branch.