The simplest way to calculate the total value of your home contents insurance is to go through each room. You should include the loft, garage, shed and utility room where applicable. Your home insurance policy may include cover for items taken on holiday. This is because your travel insurance policy may not offer a high enough level of cover for your possesions.
Make a note of all the items that you would need to replace if your home was burgled or damaged through fire or flooding.
You may need to cover valuable items such as fine art, stamps, jewellery and ornaments separately. You may require a valuation by a professional company to do this. Your contents insurance provider will have the names of companies they recommend to do this. You should also contact your insurance provider if you wish to add any items you acquire during the year. Your home insurance policy needs to be updated regularly.
Home Insurance Policy Benefits
Your cheap home insurance cover could opt for an 'old for new' policy option whereby the insurance cover would include replacement for a new equivalent value on items claimed for. This means the insurer would not take into consideration the wear and tear on the items lost or damaged and pay out for a new one.
- Fire/Smoke damage
- Storm and flood damage
- Subsidence
- Water leaks
- Burglary
- Malicious damage
Calculate your Contents Cover
Insurance companies offer additional cover that could include the following;
- Personal liability
- Food in the freezer
- Temporary accommodation
- Storm damage to gates and fences
- Damage to your garden caused by falling trees
- Theft of garden plants and ornaments
By calculating your home contents cover correctly you will not be under insured nor over insured and paying large premium amounts.
The sum insured needs to equal the total amount of money which your contents are covered for. This is the maximum amount your insurance company will usually pay out.
