How to value your home contents

From the curtains hanging in your bedroom to the power tools in your shed, it’s not always easy to estimate how much everything in your home is worth

Estimates suggest that the average UK household may have contents valued between £30,000 and £60,000, which forms the basis for the content sum insured on a home insurance policy. These figures can vary significantly based on household size, lifestyle, and possessions. With that in mind, are your belongings insured for enough? Here’s how to value home contents for insurance.

EASY AS HACK

Use a contents calculator or free app to tot up the value of your home contents. Some apps also allow you to add photos to your inventory, which can be useful if you need to claim.

what is contents insurance?

Contents insurance offers financial protection for the items in your home. Depending on the policy you choose, you’ll normally be covered against theft and damage from events like fire or flood.

Items that aren’t a permanent fixture, including furniture, freestanding appliances, jewellery, clothes and even carpets, should be covered.

Contents insurance isn’t compulsory. But, without it, you wouldn’t be covered for the costs of replacing your belongings if they’re stolen or damaged. This could easily run into thousands of pounds.

how much home contents cover do i need?

To get the right level of contents insurance, you’ll first need to work out just how much your home contents are worth. But how can you do this accurately?

Follow these steps to calculate the value of your home contents for insurance:

make a list of your possessions

The Association of British Insurers (ABI) suggests making an inventory of all your possessions.^[1] Go through your home room by room, not forgetting items in attics, basements, sheds and garages, if they’re covered.

Remember, most home insurance policies cover items at their new replacement cost. So, you’ll need to base your valuations on how much your possessions would cost to replace, not what you paid for them originally.

list high value items seperately

Home insurance policies have a single item limit. This is the maximum amount your insurer would pay out to replace an individual item if you were to make a claim.

For example, if the single item limit is £1,500 and you have a necklace worth £2,500 stolen from your home, then your insurer may only pay out £1,500 if you make a claim.

You’ll need to add any expensive items separately to make sure they’re fully covered.

ensure jewelley and valuables are up to date

Certain items such as gold jewellery and antiques can go up or down in value over time. So, have expensive items valued regularly to ensure you’re adequately covered.

Similarly, if you buy anything valuable after taking out your contents policy, contact your insurer to make sure your new purchases are covered.

keep proof of purchase

You’ll often need proof of purchase to claim on your contents insurance, especially for high-value items. Insurers need evidence that you owned the item you’re claiming for to prevent fraudulent claims.

Find a safe place to keep receipts, guarantees and warranties that prove what you bought and when. If you don’t have the original receipts, you can usually use bank statements or photos of the item in your home instead. 

don't leave yourself underinsured

Underestimating the value of your belongings could lead to disappointment when making a claim. If your policy doesn't cover the cost of your contents, your insurer might only pay a fraction of the total claim amount, leaving you to cover the shortfall yourself. 

In some cases, if the insurer believes the underreporting was deliberate or reckless, they may void your policy entirely, meaning you’d receive no payment at all.

calculate how much to insure your home contents for

Once you’ve listed your contents and replacement costs, add together all the totals for each room. Keep a separate list for valuables that exceed the single item limit. You should now have an accurate valuation of your possessions.

what should you include in your home contents estimate?

If you want full contents cover, you should consider all your possessions, not just the valuable items that may be taken. A rule of thumb is that if something isn’t part of the actual building, then you should include it in your list.

So, remember to include things like curtains and carpets, as well as belongings in your loft and outbuildings. Some insurers also cover digital downloads, including e-books, films and music, up to a certain amount.

Before you take out a contents insurance policy, be sure you know exactly what it covers, as policies will differ in the level of protection offered. For example, not all policies cover the contents of your shed, garage or freezer.

why do you need to provide estimates for valuables?

Providing accurate estimates for valuables is important because it ensures you have adequate cover and receive the correct payout if you ever need to make a claim. 

Insurers also use the contents value you give them to determine the premium you pay.

how to claim on your contents insurance

To make a claim on your contents insurance, start by contacting your insurer to let them know what’s happened. You can usually do this online or by phone. If the incident involves theft or burglary, report it to the police first to get a crime reference number. 

Gather evidence of the incident, including photos, videos and receipts for damaged or stolen items. Then follow your insurer's instructions for completing the claim form and providing supporting documentation.

Read more on how to make a home insurance claim.

FAQS