Modern policies usually come with ‘new for old’ settlement as standard for contents and personal possessions, with no deduction for wear and tear and depreciation. The only exception being clothing and linen, which generally have a short life span. Great for the insuring public and beneficial for insurers, who don’t want to waste time and resources haggling over claim settlements.
To make the ‘new for old’ agreement between insurers and policyholders a fair one, the contents should be insured for the new replacement cost. Therefore when you are calculating a sum insured that is right for you, think of the new price for your contents. For guidance with your home contents sum insured try the home contents calculator
Working out how much to insure your home contents for doesn’t have to be a daunting task. With a little assistance from our House Contents Calculator, the job can be done in the matter of minutes. It is important to make sure you are adequately insured – too little and you could be under-insured, too much and you end up paying more than you need to. Policies giving a flat sum insured of £35,000 or £50,000 aren’t always the answer, as if you have a modest amount of contents this option could be expensive. At the other end of the scale, the sum insured limit might not be enough. You should also check the total valuables limit and the single article limit, found in the small print, so see if the policy is suitable. When it comes to making decisions on the purchase of a policy, guidance from an Insurance Broker, who can recommend the policy suitable for you, is the best option.
Nearly all contents insurances give a ‘New for Old’ claims settlement, so to make the arrangement a fair one you should insure for new current replacement value. The only exceptions are clothing and linen, which generally have a short life span, so you should make a deduction for wear and tear and depreciation.
Please feel free to use our Home Contents Calculator, by clicking on the link below. We would be pleased to hear from you, as we can give competitive quotes for standard and non-standard home insurances.
House Contents Calculator