Calculating Cover for House and Contents Insurance

When you are taking out house and contents insurance you do need to calculate the costs of cover. There is no point paying for cover you do not actually need. This can push the prices of your premiums up unnecessarily.

House Insurance

Your home could be one of the most significant assets you ever own. It is absolutely essential that you protect this asset with adequate house and contents insurance. However you also don’t want to over-insurance your home and pay out more than you have to. Here are a few tips for calculating the costs of house insurance:

· Risk – house insurance will protect you financially against a wide range of risks. You need to identify the key risks to your home and ensure they are included on your policy. For example flood protection cover is getting very expensive these days and can add a lot to your policy. If you do not live in a flood risk area then you could save money by choosing a policy without this option.

· Maximum Cover– many people make the mistake of insuring their homes for the current market value. However the market price is not actually a true reflection of the costs of repairs and rebuilds in the event your home is damage. In current times house prices have been consistently high and far above the costs of a full rebuild if the worst was to happen. This means if you are currently insuring your home for the full market value then you could be paying for too much cover. Calculate what a full rebuild would cost and use this to work out your maximum cover.

Contents Insurance

Contents insurance is another important part of your policy. You can get combined house and contents insurance policies or you may decide to get them separately.

Most insurance companies will only pay as much as it costs to replace items that have been damaged or stolen on a ‘like-for-like’ basis. This means that you do need to keep receipts or credit card statements when you buy items like televisions, furniture etc. to prove how much your contents cost you.

When working out your house and contents insurance it is a good idea to do your homework and make certain you are finding the right cover for your budget.


Getting the right cover for your house and contents insurance is about balancing your budget and requirements. You will need to make sure you are getting the cover you need at a price you can afford.