get a home insurance quote

Description

When you get a home insurance quote you will be asked for various pieces of information upon which your home insurance premium – and level of cover – will be based. This includes the sum insured, the rebuild cost, contents value, voluntary excess and the value of possessions away from the home. We explain what these mean so that you can get a quote with confidence.
What is the sum insured?

The sum insured is the amount of money your home is insured for. It is the maximum value your home insurance company will pay regardless of the type of claim you may have.

When you take out a home insurance policy with an insurer they will ask you a series of questions and then use the answers you provide to calculate your premium. This means that the price of your insurance policy has been based solely on the information you have provided – insurance companies don’t generally come to your home to help you with the valuation of your contents and assessing the condition of the building.

If you underinsure the value of your contents, usually the insurance company will only cover you to the value of the agreed sum insured. For example, let’s say that ‘Bob’ has £5,000 worth of electrical equipment in his home but only insures it for half that cost at £2,500. Bob is then burgled and has all his electrical equipment stolen. The insurance company will only pay out to the value of £2,500 – leaving Bob £2,500 out of pocket.

So you can see it is well worth your while to be as accurate as possible when calculating the contents cover you need. And remember, if you buy a new sofa, dining suite or widescreen television for example, you’ll need to increase the value of your insurance to cover the increased costs of replacing them.
How do I calculate my home insurance requirements?
Buildings

The rebuild cost of your home is the cost of rebuilding your property if it is destroyed by fire etc. You should remember that the market value of your home does not reflect the rebuild cost as the latter doesn’t include the value of the land the property stands on. The rebuild cost of your property can usually be found on your mortgage agreement, or on the deeds to your home. This figure should be index-linked in line with inflation. Clearing of the land and surveyors fees should be taken into consideration as well as the cost of replacing the property.

A Rebuilding Cost Assessment is normally carried out by taking detailed measurements of the house and using the rebuilding cost information provided by BCIS (Building Cost Information Service). However, this may not be appropriate in certain circumstances, where the method of rebuilding cost assessment will need to be specially agreed.

For more information on the rebuild cost for your property, please visit the Building Cost Information Service*.

You can also use the sum insured calculator ( http://abi.bcis.co.uk/)* supplied by The Association of British Insurers to work out how much to insure your home for.
Contents

The best way to work out how much to insure your contents for is to make a list of all your possessions and their cost. If you do it room by room you will know what is in each which will make it easier if you have to make a claim. You should check the cover under your policy for items such as jewellery and art work as you may have to take out additional cover for them. Once you’ve completed your list, you will be able to tell your insurance company an accurate costing for your assets and possessions. Most insurance companies will set a maximum limit per item, usually around £1,500, so if you do have items with a higher value – perhaps an engagement ring, a watch or widescreen television, for example then you will need to list these separately on the policy.

Although calculating the value of your contents is a time consuming exercise, it is essential that you don’t underestimate how much it will cost to replace these items as you may well find yourself out of pocket should you make a claim.
What is an excess?

An excess is the contribution you agree to pay towards any claim. The excess is split into two different types, compulsory and voluntary excess.
Compulsory excess

This is an amount of money your insurance company requires that you will have to pay towards any claim made on your home insurance policy. Normally it is deducted from the settlement made to you by the insurance company.
Voluntary excess

This is an amount you agree to pay towards a claim on top of the compulsory excess you must pay. The higher your voluntary excess, the lower your premium will be.
If I take property out of my home am I covered?

Some home insurance policies include cover for certain items that you take outside of your home, such as the jewellery you wear, your mobile phone or other handheld gadgets, a bicycle or the contents of your handbag for example, and most will let you buy additional cover which is known as Personal Possessions or All Risks cover. You’ll need to check your policy to see if it includes Personal Possessions cover.

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