What is new for old cover?
Most home insurance policies are on a new for old basis. This means that in order to fully insure your contents you need to calculate the total replacement value of the things you own.
This is best 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 home insurance claim it would have to be replaced with another TV likely to be £100 minimum.
Do not be tempted to under insure your contents to save on the final home insurance premium. This can lead to serious consequences in a claim situation particularly if the condition of average is applied. This means that if you were to under value your contents by half, then in the event of a claim you only only recieve 50% of the awarded amount.
