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It may be difficult for some, especially new homeowners, to determine how much home insurance they need. Often, both buildings insurance and contents insurance make up the total value of a policy, so it is important to consider both aspects of insurance when calculating the total worth. Buildings Insurance You need to calculate how much cover you require. The amount of cover you need is the total cost of rebuilding your home, including the costs of demolition and clearing the site of debris, as well as builders’, architects’, and local authority fees. However, you should know that the cost of rebuilding is not the same as your home’s market value, or the amount you would get if you were to sell it. You may consult the Association of British Insurers website and use their online calculator to help determine the rebuilding cost. Contents Insurance In addition to buildings insurance, contents insurance is also considered vital by most homeowners. Many people, however, may find it extremely easy to undervalue the contents within their homes. It is important to take the time to value each and every item you possess, but be cautious against over-insuring as this will require you to pay higher premiums than necessary. Make a list of every item and include all pieces, no matter the size. You may be surprised to find that the value of your items is higher than you think. For antiques and other hard-to-value items, you may need to get an expert valuation. Consult with someone experienced in antiques, art and jewellery, regardless of whether your insurance company insists on it or not. To prove the value of your items, make sure you keep receipts, photographs and any other documentation you may have including the buy date and the seller from whom you bought it. Make sure you put a ruler beside smaller objects to demonstrate the scale of the items.
Additionally, take into
consideration any equipment you may have in your home, particularly
if you run a business out of your residence. Some policies cover fax
machines and computers as standard, while others will have a limit
on how much you can claim. Determining the total value of your
contents insurance is a crucial part to calculating your entire
policy, so make sure that you include each and every item. Consult
your policy handbook if you are unsure whether particular items are
protected with your specific insurance company. Copyright June Marlow 2012 All Rights reserved |
