IF you get your buildings and contents values wrong you will end up paying too much or too little for your insurance and possibly not be covered in the event of a claim.
Ideally you want to know exactly the sums you need insured so that you can have that value covered. If you insure for a much higher figure, then you will pay more for that cover and in a claim, you will never receive the benefit of the additional insurance because the provider simply will not pay above market value for the rebuild or contents.
Similarly, if you insure for less than the rebuild or contents value, then the insurance provider will only pay up to the value they have agreed and any shortfall will be down to you to cover personally. You may have paid less for the policy but what is the point in insurance if at the very minimum it does not cover the risk you are trying to protect?
So getting it right is important to ensure the correct cover is in place and the right or best price paid.
Buildings insurance value is not the cost to buy your home; it is the cost to rebuild it. It is not uncommon that a Â£300,000 property may cost just Â£150,000 to rebuild. The value you want to insure will be the Â£150,000.
To get the rebuild value you can try using online resources that calculate it, but in our experience these are difficult to find and use. They then give a massive scope for error that makes them less than convincing.
Perhaps a better way of doing it is to take the surveyors report when you bought your property as it will give a rebuild value and then calculate the inflationary rise year on year since then. It may not be exact, but it will not be far off. Alternatively you can spend money on a new survey but this is likely to cost hundreds of pounds and not be economical, it would take years to get the spend back on insurance savings.
For contents it is a bit easier, if more time consuming. Go through room by room and list everything in there that is of value. Include halls, stairs, appliances, carpet, curtains, clothes and absolutely everything.Â Add the values of everything together and at the end youÂll know what your contents value is and also have a useful list in the event of ever making a claim. Contents values vary enormously so this is a really personal value that is difficult to guess anywhere else.
Now you know the rebuild and contents values, decide the excess you are prepared to pay for each and get on to www.thepropertyinsurer.co.uk and get a quick price comparison for the cover you need.
The Property Insurer