How much insurance do I need?

Most experts recommend that you arrange your policy to cover the full costs needed to rebuild your home from scratch (according to the mortgage valuation at time of purchase). Rebuild costs are invariably lower than market value however, so it is a good idea to work out the necessary costs as accurately as possible (and thereafter, to review these figures at a regular interval to allow for inflation). This will help you to avoid overpaying on the policy in the short term or underpaying and facing a shortfall on the ultimate pay-out. Comparative diligence should also be paid when evaluating the value of your property contents- don’t skimp on costs! You should also review your contents cover on a regular basis, to allow for new purchases. Bear in mind also, that most insurers will limit the payout on a single item to
£1,500 and will usually refuse to pay at all on valuable items not covered by an inventory.