You’ve worked hard for your home and everything in it. The right cover makes sure you don’t lose out if something goes wrong. But how much home insurance is enough?
As brokers, we can’t decide your sums insured for you. But we can guide you to the right advice so you get the right figure. Here’s a simple guide to help you get it right.
🎥 Watch our short explainer video
What underinsurance means
Underinsurance is when your home or belongings are insured for less than it would cost to replace or rebuild them
today.
You won’t notice it when you buy the policy, but you will if you need to claim. It often happens when:
If you insure your home or contents for less than they’re really worth, you’ll be underinsured
Important: Deliberately lowering the figure to cut your premium is considered fraud.
Hidden costs like demolition, labour, or professional fees aren’t included
Note: Setting the right sums insured from the start avoids these gaps later.
Why the right cover matters
Home insurance isn’t just paperwork. If your cover is too low, the insurer will cut your payout and you’ll pay the rest. A small gap can cost thousands.
Example:
- Your contents are worth £60,000
- Your policy covers £45,000
- That’s 25% less than you need
- If you claim £10,000, the insurer only pays £7,500. You pay the other £2,500.
Buildings insurance: what to check
Buildings insurance should cover the full cost to rebuild your home. It should not be based on the price you paid or the current market value.
That means including:
Demolition and site clearance
Materials and labour
Professional fees and permits
The best way to be accurate
Get a professional rebuild valuation. A professional valuation gives you a figure based on real local costs. It covers materials, labour, and all the extra expenses in a full rebuild.
Note: Be careful using online building calculators.
Many don’t factor in the Channel Islands or the hidden costs that can arise if the worst happens. A valuation is the safest way to get it right.
Contents insurance: what to include
Contents insurance protects everything inside your home. It does not include the building itself.
Use today’s replacement prices, not what you paid years ago.
- Clothes, furniture, and electronics
- Jewellery, watches, and antiques
- Kitchen appliances and cookware
- Sports gear, bikes, and outdoor kit
How to work it out
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Go room by room
List what you own, including cupboards, wardrobes, sheds, and garages.
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Estimate replacement costs
Estimate how much it would cost to replace each item today.
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Add it all up
Add it all up for your total.
Not sure where to start? Contents Calculator
Watch for single-item limits
Most policies cap how much you can claim for one item (often around £2,500 for jewellery). If something is worth more, list it separately so the policy covers it.
How to keep your cover up to date
Once you’ve bought your policy, don’t set it and forget it. Life changes, and your cover should keep up.
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Check it once a year: think of it like an MOT for your home.
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Tell us about changes: new jewellery, a renovation, or anything valuable.
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Re-value big items: things like jewellery, art, and antiques should be re-checked every 2–3 years.
Result: Keeping your cover updated means no surprises when you claim.
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