Gardening is the nation’s favourite hobby, contributing £9 billion to the economy annually. Just looking at the numbers of people who attend flower shows and garden centres, it’s clear to see that it’s big business. As Chelsea ends and Harlow Carr, Hampton Court and Wisley follow, even the TV programmes have trouble keeping up.
A well-maintained and attractive garden can boost a property’s value by 10 to 15 per cent, according to Knight Frank estate agents. In the UK, 93 per cent of the population have an outdoor space or grow plants.
Over the years, garden owners can spend thousands of pounds but many may not realise the increasing value until they have to claim. A young tree today may cost £60 but when mature in 15 to 20 years’ time it could cost up to £4,000 to replace. This means that many gardens should be insured for more than £20,000.
Most insurance companies choose to ignore this enhanced value. Yet, when taking out contents cover (which is the major part of a garden), it is a requirement for homeowners to ensure the right figure is declared for protection.
There are three pitfalls: insurance policies which provide virtually no cover; skimpy protection; and difficulties ensuring the correct values are in place.
According to an analysis of 428 policies by independent research firm Defaqto, 35 provide no cover for articles permanently left in the garden, such as furniture and swings, and only 51 protect for £5,000 or more. The individual sums are pitifully low and nowhere near the cost of replacement.
You may think that garden items stored in a garage or greenhouse would be better treated but some insurers do not accept that risk. Often they demand that locks or padlocks are used. And who rushes out to move tools inside during a downpour?
Over a third of policies do not provide any cover for plants in the garden, despite the fact that theft is rampant. There’s also the risk of storm or other problems which can wreck years of work in minutes. While around half of the policies issued provide some cover, one in seven will only protect as an optional extra.
Just three per cent of all policies analysed offered cover over £5,000 which might only cover two mature trees.
And how do you ensure a fair level of protection? Some high net worth insurers apply a percentage of the overall sum insured for the property. But how to value your hobby’s value is problematic. For jewellery and antiques, there are recognised trade associations and professional valuers. The manager of the local garden centre is unlikely to be in the same league.
There is no consistent approach to this dilemma. A landscape architect holding a professional qualification who is insured for consultancy valuations is the best approach and insurers should collectively publish such a list. Both sides can then consult and work from a level playing field.
The real warning bell is that the insurance industry is not taking its responsibilities seriously. Unlike gadget and pet cover, there is no stand-alone protection product. Which insurance company will fill this gap and which one will offer proper protection for all those hours of work in the garden?
Conal Gregory is Personal Finance Editor of The Yorkshire Post
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