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How to calculate the value of your home contents

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When working out how to calculate the value of your home contents, it can be difficult to estimate the full cost of your goods. Many people under estimate the true value, meaning that they could be left out of pocket if items were stolen or damaged. It’s always worth spending a bit of extra time checking your home insurance policy to make sure you’ve covered everything.

What does home contents insurance cover?

A home contents policy will cover the goods within your house from a wide range of potential circumstances, including fire, flood and theft. It will cover items such as furniture, clothes, electrical appliances, carpets and curtains.

When you’re setting up a policy, look into exactly how they’ll replace the item. Many will pay the cost of a brand new replacement or repair the item so it looks like new. However, there are also policies that will only pay the current value of your goods. These might offer slightly cheaper premiums, but won’t pay out as much in the event of a claim.

How to work out the value of your goods?calculating the value of your home contents

It’s important that you calculate accurately how much your house contents are worth. If you simply guess at the amount, your insurance company might not pay out enough to cover the cost of replacing them. This is especially important if you have any expensive items, which might need to be listed individually.

Make a list of everything in the house, including items in the garden, garage or shed, and their values. Check the limits your policy has on expensive goods and whether you need to inform them of particular items. It’s also crucial to let your insurer know if there are any changes to the overall value, particularly if you buy a high cost item.

When you’re researching policies, it’s also worth checking if they provide additional cover over seasonal or celebration periods. For example, some insurers will increase their cover during the Christmas period or following a wedding.

What else can you include on your policy?

Most insurance companies provide additional items that you can include on top of the basic policy. These generally have an extra fee attached, so make sure you actually require them before adding them to your policy.

Accidental damage will cover you for instances such as breaking an item by accident or spilling wine on the carpet. You can also get cover against the accidental loss or damage of items when you’re away from home, including jewellery and cameras. There might be limits to the amounts you can claim on individual items and you may need to let your insurance company know in advance.

Some insurers will allow you to add Home Emergency Cover onto your policy. For a small fee this will provide access to plumbers, electricians and other tradesmen if you have an emergency at home. They usually cover the cost of the call out fee, as well as some repairs.

Shop around

The best way you can find the right policy for you is to shop around and do your research. The cheapest policy isn’t always the best choice and make sure you check exactly what’s included. When you’re comparing insurers the policies need to be of an equal standard, including the value of your possessions.

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About Catherine Stern

About Catherine Stern

Catherine Stern is a freelance writer with a background in marketing and PR. She currently writes web content on a range of subjects, from finance and business to travel and home improvements. As a working single mum of two young boys she understands the pressures that today’s working parents face and the topics they want to read about.

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