How much home insurance cover?
Do you need to know how much building coverage you need? What about the contents? Our guide can help make sure you have considered everything.
If you are looking to insure your home and/or contents, it is a good idea to know exactly how much you will be covered.
As a general rule, the buildings insurance covers itself and the exterior buildings as well as equipped equipment such as the kitchen and bathroom. If you are a tenant, the landlord must cover this.
And your contents will be whatever you take with you if you decide to move.
How Much Building Insurance Do I Need?
When assessing how much construction insurance you need, it's worth noting that you only need to ensure the cost of rebuilding your home, not its market value.
A common mistake many people make is that they forget to cover a building when they are expanding their homes. If there is a claim, compensation will only be paid on a portion of your home covered by insurance - a potentially costly mistake.
You can find the cost of rebuilding your home in your home survey/buyer report or you can solve it by using the rebuilding calculator on the British Insurance Association website.
Check out our guide on how to calculate rebuilding costs if you need more information on this topic.
How Much Secure Content Do I Need?
When purchasing content insurance, don't underestimate all the goodies.
Items like books, jewelry, clothes, tools, furniture, and even curtains and carpets can easily be left behind when locked.
To find out exactly how much content you need, use our Content Insurance Calculator. You can add value to your possessions room by room and it will combine all of your content.
Protect your valuables
Always check what's in your policy by talking to your insurance company or checking lower case.
Some home contents insurance policies cover certain items and conditions without any additional fees, while others only cover them as additional extras.
For example, "high risk" or "high value" items may need to be listed separately and protected with an additional/extended cover. These may include:
- Antiques
- Pictures and artworks
- bicycle
- laptop
- Jewelry and watches
Home insurance add-ons
- Accidental Damage - This protects you from things like DIY disasters or accidentally staining your new sofa
- Legal cover - it provides you with legal liability protection in certain circumstances such as a lawsuit being filed by someone who has been injured on your property
- Home Emergencies - Coverage for temporary repairs due to a local emergency
- Personal possessions - covers items that you may take with you outside your home, such as your phone or laptop
- New for old - claims paid on a new versus old basis
- Alternative housing - provides temporary alternative accommodation
- Locks and Keys - covers lost/stolen keys or damaged locks
What happens if I am under-insured?
For example, if your home is damaged in a storm and costs £ 160,000 to rebuild, but your insurance is limited to £ 150,000, then you are underinsured.
So your insurance company will only cover £ 150,000 for rebuilding and you will have to make up for the £ 10,000 shortfall.
The same applies when securing your contents and valuables. Suppose your laptop is stolen when you are outside, and you do not cover personal property, your insurance will not cover it.
When comparing home insurance rates, it is important to read the policy details to make sure you get the right coverage for what you need.
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