How do I work out what level of home insurance cover I need?
Finder expert Liz Edward answers
Home insurance can feel like a necessary evil, and it can be tempting to cut corners and opt for lower levels of cover to keep premiums down.
But try to resist the temptation to underinsure just to save a few pounds. Buying insurance with too-low limits could come back to bite you if, for example, you need to make a claim and find that your £10,000 worth of belongings are only covered to a maximum of £5,000.
There are calculators that let you accurately estimate the rebuild value of your property and the total value of your contents. The Association of British Insurers has commissioned a rebuild value calculator and many insurers have their own contents value calculators.
Make sure you check the maximum limit to which an insurer is willing to cover any single item, too. For example, while your engagement ring may be worth £15,000, your insurer may only provide up to £3,000 cover for jewellery as standard. If this is the case, you should be able to increase cover for this item. It’ll cost a bit extra, but it’ll be worth it if criminals target your home and steal your jewellery.