Contents insurance how do i know if i have enough cover

Buying insurance can be a tricky subject, over insure and you risk paying too much in premiums, while under insuring can also be a disaster should the worst come to the worst. So how do you know what is just right?

Obviously the most important tip when it comes to deciding on the amount of cover you need is to take your time and go through your home valuing your belongings. Along with this you can follow the tips outlined below to give you some idea of how much you might need.

Never go rushing and guessing the value of your possessions, you could be surprised how far out of range you are by making a guess. Take a notepad and walk around your home writing down the cost of everything. And by ‘everything’ I really mean everything, from CD’s to clothing to furnishing to your pet cat’s wicker basket!

Once this is done, you can make an educated decision as to how much contents insurance you need.

Also, do bear in mind that if you buy additional items you should always take these into account when it comes to renewing your home insurance. As an example, even just buying two CD’s and a DVD every month can soon mount up to well over an extra Ј350 a year – a value that should be included in your contents.

Make sure that you understand what the insurer means when they use the term “valuable”. If your policy states that you won’t be covered for items worth more than Ј1,000 and you haven’t declared a possession that is over that amount, then it simply won’t be covered.

If your policy is new for old then this means that you will get the cost of replacing items with new ones. You should always take into account the rise in cost of items every few years’.

Many policies you take out will include items such as patio furniture and garden equipment so always ensure that if these are covered by your policy, then include them in your evaluation.

Take into account any items which may be difficult to put a value to. For example, you might have a large collection of books or CD`s which you need to cover. If this is the case, then make sure these are noted and that a price has been agreed upon by the insurance company.

If you work from home the majority of policies will cover such items as computers or fax machines, so include these in your estimate if they are covered by your policy. You should also enquire as to the limit of such equipment as most policies will have a limit for items such as these.