Contents Insurance - Get Your Level of Cover Right

Many people fail to realize that if they need to make a claim on their Insurance policy it is vital to have the CORRECT level of cover. Insufficient cover can reduce the amount paid out on a claim, but if you overestimate your valuation figures, you will pay higher premiums up front - it is important that you get the level right.

A guide to valuing your goods and possessions. List your smaller items. This list will probably be a lot bigger than you first thought - go room by room. Remember, when you buy, for example, a new camera, or an item of jewellery - add it to your list! If the item is particularly valuable, don't forget to tell your Insurer.

If you have a new-for-old Insurance policy for your contents you can either replace goods or claim the full costs of any repairs required. This type of policy does NOT however, apply to clothing, as this is subject to "wear and tear". It is worth reviewing prices via the internet or clothes catalogues every two or three years to keep up to date.

Different Insurers have different interpretations of the word "valuables" It is important to check your individual policy so you know exactly what your limits are. For example, your failure to disclose a single item with a value of over one thousand pounds would mean the item was not covered at all; rather than your being able to claim up to a thousand pounds if your policy wording stated it would not cover any single item worth "more than a thousand pounds". It is vital you check the detail wording of your policy.

If your possessions include artworks, antique pieces or even expensive jewellery or watches, your Insurance company may well insist on an independent valuation of your specific pieces. You can research the appropriate organisations via the internet to provide this type of service.

Take photographs of your more expensive items, and always keep your receipts for these purchases. A good tip is to place a ruler or tape near jewellery, watches and other small items to give an indication of scale.

It is easy to amass a large collection of books, CD's or DVD's. Some of these, you would want to replace. List those items carefully, and confirm the details with your Insurer. Again your policy may limit the total sum that is insured. Check and confirm with the Insurer.

Inherited items, or artworks by lesser known or less popular artists can present problems. Probate items for example, may be valued artificially lower than they are. Again, seek the advice of a professional body or organisation. An item may not have great commercial value, but could be important to you because of family links or history.

You will find many policies have clauses in them regarding, for example fitted carpets - damage to your lounge carpet will mean replacement of your lounge carpet - your dining room or stairs will probably not be replaced. If you damage a chair from a three piece suite, your policy will replace the damaged chair, not the whole suite.

If you work from home, general items as computers or fax machines will be covered on many, but not neccesarily all, household policies. It is important again, to check your policy. If home working is not allowed, your entire cover could be invalidated.

Don't forget your garden! Expensive items such as garden furniture, barbeques and even garden ornaments and plants can be covered. Calculate the cost of the tools, mower etc in your garden shed and include these on your policy. As before, check the details with your Insurer and check your policy.