How Do You calculate the value for your Contents Insurance?

Ideally you should compile a detailed and thorough inventory of all your contents. This enables you to work out how much to insure for and, if you have a claim, your claim will be settled so much quicker.

How Do You go about making an inventory?

Be systematic. Visit every room and list down everything in it. Don’t forget the garage, loft and cellar.

Make sure that you list everything. Where appropriate record the make and model number. If there’s a serial number so much the better. A quick note about its condition and age will also be useful.

Then estimate what each item would cost at today’s prices. If you’ve got receipts keep them. Get up to date valuations for any special items, or items you are going to specifically name on the policy. For clothes and things like that we suggest you put in a ballpark valuation.

If you are having a “New for Old policy” (i.e. a policy which pays out for a new replacement item rather than the value of the item as it is now, taking into account wear, tear and depreciation), then you simply total up the value of everything you’ve listed.

If you are going for a cheaper “current value” policy, then you need to estimate the value of each item taking into account what you paid for it, how old it is and its condition. For example, say you had a sofa, which cost you £750, and you bought it 3 years ago. Let’s say that you think it’ll last another 7 years so it’s still got 70% of its life remaining. That means that it should be included in the valuation at 70% of £750 – in other words £525.

We know it’s a long job but in the end it’s the best way. If you do have a claim your records will be invaluable in substantiating your claim.

Frequently Asked Questions related to the above topic.
Click below if you wish tread them: -

• What does Home Insurance cover? (also known as Buildings Insurance)
• What does Contents Insurance cover?
• What parts of my property are unlikely to be covered by Home Insurance?
• How can we promise you a really low price?
• How are the premiums calculated?
• How Do You calculate the rebuilding cost for your Home Insurance?
• Do You have to buy your Home & Contents Insurance through your mortgage lender or mortgage broker?
• Do I need Home & Contents Insurance?
• Complaining about a Home & Contents Insurance Company

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