A leading insurer has found that the people of Wales are vastly underestimating the value of their household contents when applying for home insurance.

AXA estimate that Welsh people are underestimating their contents insurance by around £9.8 billion. The research showed that the average amount of home insurance in Welsh households is around £27,000 but people value their own possessions at over £35,000.

This gap between the policy value and people's own estimation leaves over a million homeowners with a costly bill to pay in the event of theft or property damage.

A spokesman for AXA, Nick Kidd, commented that: “It may seem a good idea to many – particularly in today’s climate – to pick the cheapest option when it comes to home insurance and save a few pounds, but £20,000 or even £30,000 worth of insurance is unlikely to cover all the contents in your home,” he said.