How precise are you when it comes to numbers? Do you tend to ‘guestimate’? It’s an interesting fact of life that we find some figures easier to get to grips with than others. When it comes to home insurance, the more precise you can be when calculating the value of all the things you own, the more likely you are to get the right insurance cover for your needs at the right price.
Home contents
When thinking about your home contents, it’s really important to pay particular attention to your sums when adding up the value of all your possessions. Ensuring you have enough insurance cover is almost as important as having insurance in the first place. Underinsurance can cause serious problems if you make a claim, as your insurance company may not pay out the full cost to replace lost, stolen or damaged items.
If, for example, you only paid for £25,000 of home contents cover, but the total value of your possessions is really £50,000, any claim you make, even for a single item included at the correct value, could be scaled-down pro rata.
Many more families now possess tablets, laptops, state-of-the art phones and electronic gadgets. Spending time going from room to room armed with a notebook and pen can help ensure you don’t forget to include all your valuable items.
Buildings cover
When it comes to buildings cover, many people stick with the rebuilding cost they started with when they first moved into their property. However, if for instance you’ve had an extension built in the meantime, then you will need to add this to your policy cover. If you don’t, you could be underinsured in the event of a claim, and could have to make up the shortfall yourself.
Your adviser will be able to give you helpful tips on calculating the right figures for your home insurance needs.