In order to work out how much level of cover you need for home insurance, you need to estimate how much your building is worth, its market value and the value of your belongings.
The big worry is that selecting coverage that is too low can leave you under insured, and valuing too high can mean that you end up paying for cover that you don’t need.
A good rule of thumb for buildings is that it needs to cover the rebuilding costs of your home should it need rebuilding from scratch. This will probably be less than the market value of your property.
Ones mortgage company can help work out the estimation of the rebuilding costs should you require assistance.
When calculating the valuation costs of your belongings homeowners should cost them at the current price of replacing everything in the event that they were stolen or damaged by water or fire.
TIP – Homeowners should work through each room in turn calculating the costs of replacing all the furniture and clothing etc, everything in the house.
Compare buildings and contents deals with our home insurance comparison.