Many homeowners are "grossly" under-insured when it comes to protecting their possessions, which could prove costly in the event of a claim, according to a price comparison website.

Moneyfacts.co.uk says that the ever-expanding array of gadgets, such as games consoles and other electrical products in the home, means that policyholders need to review their contracts on a regular basis.

In addition, not only is it wise to take out adequate insurance it also makes sense to shop around for the best deal, as many people spend more time seeking out the best price on car insurance than insuring their most valuable asset - their home.

In a statement Moneyfacts.co.uk said: "Imagine if your belongings were destroyed by flooding or a fire, the situation would be stressful enough, without the added worry that you wouldn’t receive sufficient money to replace them due to being under-insured."

It concluded by adding that if more policyholders shopped around for a better deal they could use the money they saved to put towards the "next must-have gadget".

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