To make sure that you get the cover that you require, spend a little time looking at the specifics of each policy that you’re considering.
We’ve listed four important things to check as a starting point:
1. Single item limits. You might have £1 million in contents insurance, but if your single item limit is £250, that policy may not meet your needs. Some companies also save costs by removing cover for smaller items, such as locks and keys.
2. Research your rebuild value. This should be based on the cost of rebuilding your home, not the price you could get for selling it. Some insurers are reducing premiums by basing the rebuild value of a property on the Royal Institution of Chartered Surveyors (RICS) calculator, but this can be up to 20% either side of the true value of rebuilding your home.
3. Check excesses carefully. If you haven’t purchased insurance for a while you may find that excesses are higher than you expect, even for relatively low-cost items. This is one way that providers with very low premiums make their money.
4. Don’t over-insure. Optional extras can be invaluable, but sometimes your standard policy will offer the cover that you need. It’s always a good idea to recalculate the value of your contents and think about whether there have been any changes in your household, such as building work or children leaving home.