How much should you insure your possessions for? It’s a tricky question, since too low means you wouldn’t be able to replace everything if you made a claim, while too much means you’re wasting money on the premiums, and the Loss Adjuster will require the correct valuation when you claim. What you need is just enough cover.
In addition to the basic cover, contents insurance providers offer various add-ons. Perhaps the most important of these is Accidental Cover, which we’d advise taking up, while other extras like Legal Cover and Home Emergency Cover depend on the circumstances. If you’ve done the sensible thing and gone through an insurance broker, they’ll advise you on these.
Valuing Your Possessions
So how do you get an accurate valuation of your possessions? It’s a laborious job, but you only have to do it once. Just go from room to room putting each item and its value on a spreadsheet, not forgetting those obscure items (bike, barbecue, exercise equipment) that you used once or twice and stuck in the shed or attic.
You’ll be surprised how much it all adds up to — and the good news is that, once you’ve done it, you’ll only need to add new items as you get them.
For anything regarded as high-value by Insurers, you’ll need to make up a second spreadsheet. Anything worth more than the Insurer’s high-risk single item value must be itemised in the insurance policy, or the Loss Adjuster will refuse to pay out on a claim for those items.