05 February 2016

Could you be undervaluing your home contents?

The value of the things inside your home can creep up gradually as gifts and everyday purchases accumulate. If you haven’t calculated the value of your contents for a while, now might be a good time to check that your home insurance is giving you the cover you need.

According to the Association of British Insurers (ABI), a typical 3-bedroom family home contains items worth a total of £55,000.

That sounds like a lot, but when you begin to add up the value of furniture, electrical appliances and soft furnishings, you might find that the contents of your home are worth more than you think.

How much contents insurance do you need?

To make sure that your contents insurance covers the full cost of replacing missing or damaged possessions, all you’ll need is a pen and paper, internet access, and enough time for a wander around your home and garden.

Step one:
Visit each room in your house and make an inventory list of the possessions that you need to cover. Our contents calculator will give you a reminder of the items that you might need to include in each room. Don’t forget to visit attics, basements, sheds and garages too.

Step two:
Now simply add up what it would cost to replace every item at today’s prices, not what you paid for them. A quick internet search should give you the cost of items, or their nearest equivalent, at today’s prices. You can input the values in our contents calculator as you go for convenience.

Step three:
Let your insurer know about any expensive items you own so that they can make sure that the items are covered by your policy.

Home or away

For added peace of mind, you can personalise your contents cover with additional options. Personal possessions cover will protect items that you take with you when you leave the house. This includes accidental loss or damage for items such as your mobile phone or jewellery.

Keep things up to date

To further avoid the risk of being under-insured, let your insurer know if you splash out on any major purchases or are lucky enough to receive a gift that could increase the value of your possessions.

Make sure that you regularly check whether your home insurance gives you the level of contents cover that you need. Our contents calculator will give you a helping hand.

Always check the terms and conditions of your policy to see what exclusions and limitations apply.

Article updated on the 6 April 2016

Other information you may find of interest

Is your home underinsured? (PDF)

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