How Much Contents Insurance do I Need?
As with home insurance, your contents insurance cover should directly reflect the amount it would take to replace all of your household possessions if they were to be completely destroyed.
Determining your contents insurance needs
The average family is worth more than £45,000 in household possessions; however, to get an accurate assessment for you own specific requirements you would need to conduct a room by room inventory; including everything in the loft, garage, cellar and/or garden shed, as well as the main structure itself. Once listed, you would need to calculate what it would cost to replace each item at current prices; adjusting for typical wear and tear for things like clothing and linen.
While this is the most accurate way to determine the level of cover, for those looking for an easier solution there are insurers who offer a maximum amount of cover that, if acceptable to you, eliminates the need for maths. If the maximum amount is not sufficient additional blocks of cover can be added, for a price of course.
Working from home
Some insurance companies do not cover losses that result from home business activities; others provide a standard £5,000 maximum for home business equipment. If you work from home on a regular basis be sure to indicate the type of business separately from the home cover your policy provides. It might be that you will need to buy an additional policy to cover any business-related equipment you might have in your home.
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