Part five: How much should I cover my contents for?

This obviously varies between households but you need to ensure that the sum you're insured for is enough to cover the cost of replacing all of your belongings at their current market value. You should not factor in depreciation or wear and tear as many insurers will operate a new for old policy.

This means that, if you bought a 32 inch widescreen TV for £500 in 2005 and you are adding it to a new insurance policy, you should insure it against the value of a brand new 32 inch widescreen television if you were to buy it today. If the television you have is no longer in production then you need to price it against the nearest comparable model.

Most insurers will offer a minimum level that they will cover you for, but make sure that you work out a figure that will not leave you short should the worst happen.

Many people under-estimate the value of the contents of their homes so it's important to make sure you are adequately covered. Not only could you find you aren't able to replace everything in the event of a fire or some other disaster but the insurer may only pay out a proportion of the claim, or even turn it down altogether. It's therefore well worth taking the time to go round the house and tot up the value of everything in each room to make sure you have the right level of cover.

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About This Guide

01 December 2011
Written By:
Clare Francis
Home insurance


Rated 3/5 (average from 6 ratings)

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