Many people, when asked how much they’d need to rebuild their home would have little or no idea. Your estate agent’s valuation report is a good estimate for the amount of cover you need. Be careful not to confuse its market value i.e. what you bought it for or could sell it for now, with its rebuild cost, as there could be a big difference between these.
Quite a few companies now offer blanket cover of up to £500,000 or £1 Million Building sum insured and anything from £30,000 to £100,000 Contents cover.. This makes life easier for you because you don’t have to have an exact figure before you can get insurance.
If you have particular valuables that you want extra protection for, mention this when you are choosing your policy or check the ‘specified items’ amount covered in your policy. Some companies will cover certain items at no extra cost.
Most policies will include an excess. This is the amount you will need to pay towards any claim. This can be paid directly to a supplier or deducted from your settlement, but if you are comparing policies make sure you compare the same excess on each one.
Is the cheapest policy always the best?
No not necessarily, it depends what your individual needs are. Look through the policy document carefully to see what is and what isn’t covered. The cheapest policy is usually standard cover.
For contents insurance, think carefully about what you want to cover before you choose the cheapest policy. It might be safer for you to spend a little more on your premium to look after the things that are important to you. For example, if you are a keen cyclist and you own an expensive bike, make sure it’s covered as a specified item. If its value is greater than the single item limit, then it’s common sense to pay a little extra to protect it.
Get new for old
Check that the policy you choose replaces new for old. New for old protects the value of the things you own, so that the full cost of replacing them if they are stolen, or repairing them if they are damaged, will be met.