How do I calculate how much insurance cover I need?
The market value of a home is dependent on many factors, including locality, local amenities, size of plot, etc, and therefore bears no relation to the actual rebuilding costs.
You may find your home's rebuilding costs in any valuation report or survey that was carried out when you took out your mortgage.
If you do not have a survey report, you may wish to instruct a surveyor to carry out a survey for you. The Royal Institute of Chartered Surveyors will advise you of members in your area. The Association of British Insurers also offers useful advice and information on-line, together with a guide to calculate rebuilding costs.
For contents insurance cover you should calculate what it would cost to replace all your items at today's prices.
Many insurance companies will insure your property and its contents up to a maximum level so that you do not need to know the exact amount of re-building costs or replacement costs for your contents.
There are many questions you need to ask before deciding on which cover is best for you and it is fair to say that the cheapest isn’t always the best.
For impartial help and advice please call us on 0845 459 8801