How much home insurance is enough?

Our guide is here to help you understand how to benefit fully from your policy cover.

• How much buildings insurance is enough?
• How much contents insurance is enough?

How much buildings insurance is enough?

It’s important to have enough home insurance coverage to protect the belongings you work hard for. But how do you determine the right amount of coverage? Here are a few things to consider when deciding how much home insurance is enough for your needs:

• Rebuilding Cost: In order to determine the right amount of coverage, you’ll need to consider the cost of rebuilding your home. This includes not only the cost of materials and labour, but also site clearance, professional fees, and permits. Keep in mind that the rebuilding cost is not the same as the amount you paid for your home or its current market value.
• Valuation: If you’ve recently completed a mortgage application you may have a valuation that includes the rebuilding cost. If you haven’t had a valuation in a while, you can look into getting one independently.
• Home Improvements and Non-Standard Construction: Keep in mind that home improvements and non-standard construction may increase the rebuilding cost of your home. It’s also important to note that rebuild costs can rise over time, so it’s a good idea to check when you renew your policy to make sure you have enough coverage.

As an insurance broker, we can’t tell you what your sums insured should be, but we can point you in the right direction to get the guidance you need.

Tips for Assessing Your Home Insurance Needs

• We have access to an online provider called RebuildCostASSESSMENT.com, who can give you a valuation for re-build purposes. Please give us a call if you want to benefit from this option.
• Refer to the residential rebuilding cost calculator issued by the Association of British Insurers (ABI) and BCIS.
• You can download and use our rebuilding cost guide:
  • Rebuilding costs guide for Guernsey
  • Rebuilding costs guide for Jersey

How much contents insurance is enough?

It’s important to have enough contents insurance to protect all of your belongings. But how do you determine the right amount of coverage? Here are a few things to consider when deciding how much contents insurance is enough for your needs.

Don’t Underestimate the Value of Your Belongings

Trying to work out the total replacement value for all your belongings can take time and effort, but it’s really important to not underestimate how much they are collectively worth.

The amount you select as your contents sum insured is the maximum amount you can claim in a single event for loss or damage to your contents, for example if your home was destroyed in a fire you would need to replace all of your contents at the same time, right down to the food in your cupboard and the clothes in your wardrobe.

How to work out the value of your contents?

To determine the value of your contents, you can follow these simple steps:

• Create a list of items in each room, including everything that isn’t part of the structure of your house. Don’t forget to include contents of the wardrobes and cupboards.
• Estimate how much it would cost to replace each item.
• Add up the costs of all your items to get an approximate amount.

You can research approximate replacement costs online. However, for antique or other high-value items, you may need to obtain a professional valuation.