We’ve said it before and we’ll say it again: the cheapest insurance cover is rarely the one that is best for your circumstances. With that in mind, when you take out home insurance, you will need to make sure that not only do you get the best value for money, but that the policy you choose offers you adequate cover.
As a rule of thumb, buildings insurance (unsurprisingly) covers the building, plus anything attached to it, such as gutters and fitted fixtures, as well as any outbuildings. If you rent your property, your landlord is usually responsible for this cover. If you own your home, you will need to make sure that the cover you opt for is enough to rebuild your home; you don’t cover the market value of the property. If you extend the property, your insurance will need adjusting accordingly. You can calculate how much it would cost to rebuild your home on the Association of British Insurers’ website.
Contents insurance is basically anything you would take with you if you move — furniture, personal belongings, computers etc. The best way to make sure you have considered everything when setting up your insurance is by taking an inventory. This can be in the form of a video, photographs or notes; go into each room and log everything in categories — for example, contents of wardrobe – £500 (there’s no need to log each item separately). Record high value items, such as pieces of jewellery, individually — if you have any individual pieces worth over £1500, you will probably have to insure them at an additional cost. Don’t forget TVs, games consoles and home computing equipment; these are all items that can quickly add up in value. Head out into the garden and calculate the value of replacing your garden furniture and everything in your outbuildings — these can add up to a surprising amount.
Finally, cross-check the cover on your insurance with your inventory — it’s better to be safe than sorry, so never under-value your possessions.
