Valuing your home

How to calculate your rebuild and contents costs

We realise it can be difficult when it comes to valuing your property and contents for home insurance. At Invicta we want to make the process quick, easy and accurate to ensure you have the right cover. When you take out home insurance you need to know the value of both your property and your contents. The sum insured for buildings is the figure that it would cost to rebuild your home, sometimes referred to as the total rebuild cost, if it were destroyed by fire or another disaster.

The sum insured is the amount of money for which your home is covered. It is the most your insurers will pay in the event of a claim. You must calculate an adequate sum insured to avoid claims being not fully paid because of under insurance. It is the responsibility of the policy holder to get the sum insured correct. Your friendly advisors at Invicta are always happy to answer questions and provide advice to help you.

There are several quick and easy ways to calculate your rebuild cost. If you recently purchased the property an up to date rebuild cost should be detailed in the survey. A chartered surveyor can be hired to provide you with a professional rebuilding cost assessment which will provide the most accurate figure. The Association of British Insurers has a free building rebuild cost calculator which is simple to use and should suffice for most properties. Click here to access the calculator.

Although buildings insurance is compulsory if you have a mortgage contents insurance isn’t compulsory but is a good idea if you wouldn’t be able to afford to replace your possessions if they were stolen or destroyed in a disaster. The sum insured for your contents covers the cost of replacing your possessions if they are damaged, destroyed or stolen. It includes everything you could take with you if you moved home including your furniture, kitchen appliances, curtains, bedding, clothing, television, computing equipment, jewellery, etc.

You can arrange cover for items that you take away from your home such as mobile phones, mp3 players, tablets and jewellery. Also think about music and other files stored on your computer – you can insure these too. Include items that were presents as well as equipment stored in a shed or garage. You might consider insuring items over a certain value which as a rule of thumb is over £1500 or your insurer’s specified item limit such as antiques, art, musical instruments and jewellery.

When calculating the sum insured value for your contents remember that cover is new for old. As with buildings the most the insurer will pay out in the event of a claim is the sum insured and could be less if you are under insured. The easiest way to calculate your home contents is to make a list of your contents room by room (don’t forget lofts, basements, garden sheds and garages) and give it a value. This should give you a final value to use as your sum insured.

Your contents sum insured value should be increased every year in line with the Retail Price Index. Some insurers automatically increase the sum at renewal however this won’t take in to account any gifts you received and new items that you bought throughout the year. It’s best to consider adjusting this figure every year.

With just a little homework you can quickly get your sums insured accurate so you are getting the right amount of cover you need and aren’t paying for cover you don’t need.

Invicta House, Amherst Hill, Riverhead, Sevenoaks, Kent, TN13 2EL
Tel: 01732 471950 Email:
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