UK Home Insurance Articles Swiftcover Home Insurance
search advanced search

Home >> Home Insurance Articles


Home contents insurance - limit your risk with the right cover limit

Article by Simon Christopher
Article added: 30/7/2010 - Last updated: -
Rating: 4.00 4.00 (2 votes)


home contents insuranceWhenever you take out a home contents policy, you'll be asked to set a cover limit: the higher the limit, the higher your premium.

In some cases you can pay an even higher premium for cover without a limit, though naturally you'll still only get a payout high enough to cover your actual losses.

The problem is that these can seem like huge amounts and it can be easy to underestimate the value and become underinsured. Most estimates of the cover required for the contents of an average home are in the £40-£50,000 range.

Underinsurance

Its important to remember that some insurers use a policy known as averaging. This means that whenever you make a claim, they'll adjust the payout based on your cover level for the entire house. That means that if they decided your entire possessions are worth £50,000 and you only have £25,000 cover, they'll only payout half of each item's value. This applies even if you are only claming for a single item which is well below your cover limit.

Renting vs Owning

You'll notice as you go through the list that some items won't apply if you are renting. This is usually reflected in the cover limit suggested to tenants rather than homeowners, and thus in lower premiums.

Cover Checklist

Here are a few reminders of some of the things you might forget to include when checking your total contents value. Bear in mind that you need cover for replacing everything: it's unlikely to be needed if you are burgled or even flooded, but in a fire everything really could go.

Kitchen: You'll need cover for all your gadgets, your cookbook collection and that rare whiskey in the cupboard. Don't forget the value of the food in your fridge and freezer which could be ruined by an electric outage: a full load can easily approach or reach three figures.

Bathroom: You won't have to worry too much about a tub of Brylcream, but even a half dozen bottles of cologne or perfume can soon add up.

Bedroom: Don't forget all that stuff you have buried away under the bed or in the cupboard. OK, not everyone has diamond earrings worth a fortune, but that tent, rucksack and airbed could be an extra couple of hundred quid to replace.

Outside the house: Most of us will remember to include the costs of garden furniture and the lawnmower, but look up to the roof: anything from a blazing inferno to a storm and you could be looking at a hefty parts and labour bill for replacing an aerial or satellite dish.

Living room: Fair enough, the British Film Archive isn't going to declare your house as its next venue, but 50 DVDs, a dozen or so old VHS tapes, 100 CDs and that batch of old vinyl, and you could be safely into the thousands of pounds range. And even if your shelf will never be mistaken for the British Library, 50 paperbacks at a fiver a piece and you're talking £250.



PLEASE NOTE: The guidance published in this article is for information only and does not constitute financial advice or a recommendation of any particular home insurance policy or company. If you are in any doubt please consult an independent insurance adviser. A database of advisers in your area is available at www.unbiased.co.uk

Copyright UK Insurance Index http://www.uk-insurance-index.co.uk. All rights reserved.


comments about this home insurance article

Comments About this Article:

 Add a Comment


share this home insurance article

Share this Article:



rate this home insurance article

Rate this Article:


Please rate this article between 0 and 5
with 5 being top.
All ratings received for this article.

all categories ALL CATEGORIES
A-Z Categories

popular categories POPULAR CATEGORIES
Car Insurance
Home Insurance
Life Cover
Mobile Phone Cover
Pet Insurance
Travel Insurance

directory categories DIRECTORY CATEGORIES
Business
Event
Health
Home & Property
Insurance Brokers
Life & Protection
Marine
Motor
Non UK Insurers
Pet & Animal
Personal Possessions
Specialist Cover
Sport
Travel

review categories REVIEW CATEGORIES
Business
Car & Motor
Health
Home
Insurance Companies
Life Cover
Motorcycle
Pet & Animal
Possessions
Sport
Travel

article categories ARTICLE CATEGORIES
Business
Car & Motor
General
Health
Home & Property
Insurance Awards
Insurance Guides
Life Cover
Pet & Animal
Travel

news categories NEWS CATEGORIES
Business News
Car and Motor News
General News
Health News
Home & Property News
Life Cover News
Pet and Animal News
Travel News

FEATURED SITES
Churchill Home Insurance
Churchill Home Insurance
Award winning home insurance company with comprehensive features and price guarantee.

Gocompare home insurance price comparison
Gocompare.com
Gocompare helps you to compare quotes from more than 65 home insurers in minutes with just one form.

latest listings LATEST LISTINGS
UKinsuranceNet Home Insurance
Age UK Home Insurance
Protect Your Bubble Home Insurance - 25 cash back*
Policy Expert Home Insurance Comparison
Staysure Home Insurance

latest reviews LATEST REVIEWS
Domestic and General Washing Machine Cover
Key Connect Home Insurance
Warranty Shop Home Appliance Cover
RIAS Contents Cover
Homeserve Boiler Cover

latest articles LATEST ARTICLES
Home insurance complaints what you can learn from others misfortune
What happens when an insurer won't pay your home insurance claim
Home contents insurance - limit your risk with the right cover limit
Are you a victim of the home insurance postcode lottery?
Will a flood leave your home insurance high and dry?



Home | Privacy & Cookies | Terms of Use | Contact | Submit Site | Advertisers

Page protected, do not copy

This website uses cookies to ensure a reliable browsing experience. If you continue to use this website you are consenting to us using cookies in this way. To find out what cookies are, which ones we use and why we use them please click here.

Copyright © 2017 UK Insurance Index. All rights reserved.
All directory listings, articles and reviews are provided as information only and do not constitute advice or a recommendation of any product or provider. If you use these insurers, we take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy of these third-party web sites or companies. If you have any doubts you should consult an authorised independent financial adviser for advice based upon your individual needs and circumstances. A database of advisers in your area is available at www.unbiased.co.uk.