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How Much Are Your Possessions Worth?

By: Mark Bartley

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To cover your household possessions against theft, fire and flood, a good home contents policy will provide peace of mind and security. When it comes to insuring against the loss of your personal possessions it is important to know the difference between buildings and contents insurance. Buildings insurance covers the structure of the property and any outbuildings such as sheds and garages, while contents insurance covers the items within the buildings, such as electrical appliances and valuables. Often you can buy both types of insurance as one package, but you'll still need to work out the value of your possessions in order to get the best deal for the contents element of your insurance. Items to insure should include furniture, electrical goods such as televisions and stereos, household appliances, clothing and jewellery and computer equipment. But remember that you will be limited to a specified amount on your insurance policy.

One important reason why you'll need to get the correct value of your contents is to avoid being under insured, otherwise if you ever need to make a claim you might not be able to recover the full value of your possessions in the event of loss or damage. Likewise, over estimating the cost of your possessions could leave you over insured, and probably with a policy that you could have paid much less for had your estimation been more accurate. To help you get a precise valuation on the value of your possessions, it's a good idea to use a contents calculator.

There are a range of contents calculators available online. They are an easy way to get an accurate figure for you to use when looking for a home insurance policy and are usually free to use. Home contents calculators can vary, with some only taking a few minutes to complete, while others can go into more detail.

If you want to measure the cost of your contents yourself, then start by going through each room throughout your entire property. Include everything that is not covered by your buildings insurance, but don't just guess, as many people find that they are surprised by the total value of their contents. Anything you have made or gifts from other people should be included in your calculations. Remember to take into account any change in inflation over the period of time since it first came into your possession. Another good way to work out what to insure is to regard anything as what you'd take with you if you moved home as an item that you need to cover.

How much contents insurance will you need?
Each home contents valuation can vary, but the typical household will contain an average of £50,000 worth of possessions. Most possessions will be covered on an old for new basis, which is why it is important to account for inflation in your calculation. A wear and tear or indemnity policy will cover your possessions on the basis that any claim could be paid out with a reduction for deprecation of the value of your possessions. There will probably be a limit on the amount of jewellery and other valuables you can insure on a home contents insurance policy. Certain individual items you want to insure may need a separate form of cover.

Getting the best deal on contents insurance

Once you have valued your possessions it is important to shop around for the best quote from a home contents insurance provider. Good home security could reduce your premium, as could having fire alarms and membership of a Neighbourhood Watch scheme. A no claims discount can often be available – the more years you do not make a claim, the more discount could be.

Article Source: http://depositarticles.com/

This is one of several articles by Mark Bartley that assist in helping enhance your understanding and grasp of the home insurance sector. Watch out for more information from Mark on other personal finance products.

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