The Edinburgh Realty eNewsletter

Six top tips: House and contents insurance

This month’s top tips could be just the prompt you need to review your current insurance policy. Is it the best one for you? Is everything up to date? Is your home insured for the correct amount? Read on and find out.

1. Take the time to accurately work out how much insurance you need: House, contents and liability. There are online tools that help you do this. You don’t want to under estimate and find yourself unable to replace your home; but nor do you want to over estimate and pay more insurance than necessary.

2. What type of house insurance? You have three options: i. Total replacement – whereby, the insurance company rebuilds or repairs your house and covers all the costs. This option may not be available to you – it depends on the age and construction of the house, as well as other factors. ii. Fixed sum insurance – together with your insurance company, you agree on the amount to insure for. That is then the maximum the company will pay. iii. Indemnity policy – based on the value of the house immediately before it was lost (generally the market value). This is generally the least expensive option, as it can leave you short of the amount you need to repair or rebuild.

3. If you opt for a fixed sum policy, keep it up to date: The cost of building is always rising, so review the agreed insurance amount every couple of years.

4. Let your insurer know if you have particularly valuable items: This may be jewellery or artwork. It is important the insurance company has a record of the items and their value, should you ever need to claim on them.

5. Cast an eye over your home and contents insurance each year: When the annual summary arrives, run your eye down the page. You never know what you’ll pick up that you’ve missed in the past.

6. Get at least three quotes: And remember that cheapest is not necessarily best. Ask around and find out who’s good to deal with, should you have to make a significant claim.