A Real Risk of Riches to Rags

Hiscox Estimates That 60% of High Value Homes Could be Underinsured

LONDON, May 9, 2011 - New research by specialist home and contents insurer (
www.hiscox.co.uk/personal-and-home/home-insurance/) Hiscox reveals
that 60%* of high net worth homeowners are underestimating the true value of
their possessions, leaving them at risk of being underinsured.

The insurer analysed the results of surveys carried out on behalf of
their clients over the course of a year. In Hiscox's experience, many
homeowners are surprised when they discover the value of the things they own.
Many have not considered the items they have accumulated over the years,
items inherited or fluctuations in the value of jewellery, art or antiques.

These findings come as further research carried out for Hiscox by YouGov
shows that 67%** of high net worth homeowners are confident they know the
value of their home and its contents - a confidence likely to be misplaced in
light of Hiscox's own findings.

Andrew Cheney, risk and valuation advisor at Hiscox, comments: "After a
while even the special things in your home can seem like part of the
furniture. This means that when it comes to estimating the value of your home
contents, it can be easy to forget about items that actually hold reasonable
value."

Regularly review, cut the consequences

The consequences of being underinsured could mean that in the case of a
loss, the payout will not cover the total value of the items lost. Regularly
taking stock of contents, getting regular valuations and reviewing insurance
policies, mean homeowners can then find the right insurance cover to suit
their needs.

Cheney adds: "People spend their money in very different ways: some
accumulating art collections, others designer labels and accessories. It is
therefore important to consider all items in the home and not just those that
are front of mind. Using a check list can help people conduct an accurate
self assessment as it prompts them to think about including the easily
forgotten items such as the curtains, carpets and bed linen."

Home contents calculator app

Hiscox has launched a contents calculator iPhone application to help
homeowners make a more accurate assessment of their home contents. The app
can be used to systematically go through the home and garden to record the
approximate value of all possessions. The app is free to download via the App
store on the iPhone (search for Hiscox), or using the Quick Response (QR)
code at www.hiscox.co.uk/apps.

Hiscox has also put together an underinsurance trigger list to help
people think about the value of their possessions:

- Price changes: items move in and out of fashion or as demand increases,
so do prices. A recent example is the value of jewellery which may have
increased due to a rise in the value of gold. Homeowners who have not had
their jewellery appraised in the last few years run the risk of being unable
to replace a loss at current retail levels

- Accumulation: possessions grow over time. A set of crockery, new
mirror, painting, vase, clock, watch or designer handbag - the value of these
items really can add up over time

- Upgrading: over the years, belongings are replaced with newer, better
models - for example, a modern luxurious sofa replaces the old one or some
teak garden furniture replaces the plastic set

- Interests broaden over time: CD and book collections, pottery and works
of art all come with a value

- Leisure pursuits widen: golf clubs, sporting apparel, fishing equipment
- the list is endless

- Children happen: with them come a whole variety of clothes, accessories
and toys

Notes to editors

* Data collected by technical risk management surveyors of Hiscox high
value home insurance clients (Hiscox 606 Home Insurance). The 715 surveys
were completed in 2010. The survey includes buildings, contents, fine art or
valuables.

** Research of 505 UK adults with net assets of GBP100,000+ carried out
on behalf of Hiscox by YouGov in January 2011.

About Hiscox

Hiscox, the international specialist insurer, is headquartered in Bermuda
and listed on the London Stock Exchange (LSE:HSX). There are three main
underwriting parts of the Group - Hiscox London Market, Hiscox UK and Europe
and Hiscox International. Hiscox London Market underwrites internationally
traded business in the London Market - generally large or complex business
which needs to be shared with other insurers or needs the international
licences of Lloyd's. Hiscox UK and Hiscox Europe offer a range of specialist
insurance for professionals and business customers, as well as high net worth
individuals. Hiscox International includes operations in Bermuda, Guernsey
and USA. Hiscox Insurance Company Limited, Hiscox Underwriting Limited,
Hiscox Europe Underwriting Limited and Hiscox Syndicates Limited are
authorised and regulated by the Financial Services Authority.

For further information, visit www.hiscox.com

For further information please contact: Hiscox Ltd: Johanna Boland, Group Communications, +44(0)20-7448-6494, johanna.boland at hiscox.com; Abi Clark, Group Communications, +44(0)20-7448-6470, abi.clark at hiscox.com