Valuing your home's contents: a quick guide
Many people underestimate the value of the contents of their home - but it's vital to be accurate so you're covered in case of damage or theft. Our guide shows you how…
What is contents insurance?
Contents insurance covers you if your possessions are stolen or damaged, for example in a fire. The average British home's contents are worth over £40,000 although many are insured for much less.
Why do I need to be accurate about the value of my home contents insurance?
If you're not accurate, your monthly premiums may work out cheaper, but you could be left short if you have to make a claim. You should be confident that the amount you're insured for is enough to replace every item in your home.
How do I estimate the value of my contents?
It's easy to underestimate, especially if you bought things a long time ago or they were gifts. To get an accurate estimate, go through each room of your home in turn noting the value of:
- furniture
- books, CDs, records, DVDs
- jewellery, clothes, shoes and accessories
- kitchen equipment including china and cutlery
- gadgets
- white goods such as your washing machine
- prams or pushchairs
- all electrical equipment, including PCs, MP3 players and games consoles
- bikes
- paintings, ornaments and antiques
Keep notes of exact model names and numbers, and the year you bought things - receipts and guarantees are a big help here.
When calculating, consider the value of the item new at today's prices. This is the amount you would need to buy a replacement.
Take photographs or a video of the contents of each room and keep this in a safe place - ideally not in your house.
Which items are commonly overlooked?
Don't forget to include:
- sport and exercise equipment
- musical instruments
- luggage
- camping equipment
- vacuum cleaners
- flooring, carpets and rugs
- mirrors and clocks
- bed linen, tablecloths and towels
- food and drink, such as wine
What if I'm underinsured?
If you're under insured it's unlikely you will get the full value of any items that are damaged or stolen.
Insurers work on an averaging system. If they discover your home contents were worth more than they were insured for, it means you were not adequately covered, and they will adjust their payout accordingly - or refuse to pay out at all.
What counts as a high-value item?
High-value items such as diamond rings and antiques will need separate cover. Check with your insurer about anything worth over £1,000. It's best to get items professionally valued if you're unsure, and get them revalued regularly - every couple of years or so - to make sure the value is up to date.
Key points
- Don't overlook the obvious- things like CD collections and sets of knives are often overlooked, but they're not cheap to replace.
- Keep your policy up to date - keep your insurer informed of any changes to the value of your contents (for example if you buy a new bike or stereo) otherwise you might not be covered.
- Don't overestimate either - while it's important not to underestimate the value of your belongings, overestimating can mean unnecessarily expensive premiums.
- Remember outside the house - items in your garden, shed, greenhouse and garage count too, so include your tools, patio heaters, garden gnomes and so on.
- There are alternatives - some insurers don't ask you to estimate the value of your home contents, but cover you for an approximate amount based on where you live and the number of bedrooms in your house.
Find out more