How much should I insure my possessions for?

Modern home insurance policies are new for old contracts. This means that in order to fully insure your possessions you need to calculate the value of the things you own.

This is easiest done on a room to room basis with a notebook and pen. Remember to value your belongings at shop prices. For instance you might think that old black and white TV is worth just £10 but in an insurance claim it would have to be replaced with another TV likely to be £100 minimum.

Do not be tempted to under insure your home contents. This can lead to serious consequences in a claim situation particularly if the condition of average is applied, so if you under insure your contents by half, you will only receive half of the claim amount.