Contents insurance: FAQs
What's the difference between a sum-insured and a bedroom-rated policy?
Your home computer is likely to be one of the highest value items
With a sum-insured policy, you work out the value of your possessions and the insurer calculates your premium on that basis.
A bedroom-rated policy does away with the need to calculate exact costs, and instead is based on the number of bedrooms your home has (subject to maximum amounts of cover).
It's not always obvious which type offers the best value, so we suggest you get quotes for each before deciding.
Buy direct or from a broker?
After checking out our Best Buys, it might be worth consulting a broker or internet site as well.
However don't rely on brokers to get you the best deal all of the time when it comes to insurance - they rarely search the whole of the market and they will add their own fees to the premium. Going direct to the insurer will get you the best value policy.
House insurance is one of the financial products where you have a good chance of saving money if you haggle. All you need to do is collect some quotes from alternative insurers, then go back to your existing insurer and ask it to match or beat the lowest premium you've found. Which? research shows that insurers are prepared to do this, so it's well worth a try.
We have three bedrooms - we sleep in one, use one as a games room and the third as a study. How many bedrooms shall I tell my insurers we have?
You should say you have a three-bedroomed house as insurers will want to know how many rooms were originally designed for sleeping in, even if they're now used for a different purpose. Your insurer may also want to know whether any rooms have been converted into bedrooms.
How do I value items that don't have a modern equivalent - eg old furniture or out-of-print books?
You should insure your belongings for the amount it would cost to replace them with an equivalent new item at today's prices.
You need to be as accurate as possible to avoid being under or over-insured. If you're unsure, you could get an expert valuation from an antique dealer, bookshop or auction house. Your insurer should also be able to offer advice.
You can get further information from the Association of British Insurers (ABI).
What is accidental damage cover?
Standard contents policies include some cover for accidental damage - for example, to stereo equipment and glass in furniture - but don't cover accidental damage to goods or furnishings. For an extra premium (typically between £20 and £100), you can extend cover to these items.
This can be useful if, say, you have young children. But if your household is less active, accidental damage cover might not be worth paying extra for.
What is personal possessions (all risks) cover?
Personal possessions (sometimes called 'all risks' cover) is another extra cover you can add to your contents policy. It covers loss of your possessions away from home - a handbag or camera, for example.
New-for-old cover will give you a bit more security
However, there are restrictions on what exactly is covered, so check with the insurer before opting for this to be sure you know what you are paying for.
What's the difference between new-for-old and indemnity cover?
With new-for-old cover, the insurer either pays the full cost of repairing damaged items or pays to replace them with equivalent new items if they are stolen or destroyed.
Indemnity policies, on the other hand, deduct an amount for wear, tear and depreciation from any payout.
Although an indemnity policy might be cheaper than new-for-old cover, we don't recommend them, because they could leave you much worse off if you have a large claim.
I live in a shared flat and, despite having my own lockable room, I haven't been able to find an insurer that will cover my possessions. What can I do?
Insurers won't normally insure shared flats because there's a greater risk of claims being made. However, some companies do specialise in this sort of cover.
An insurance broker may also be able to find a suitable policy. The other way round it is for you and the other people in the property to take out a policy together.
Will I get charged if I pay by instalments?
Some, but not all, companies charge extra if you pay by monthly instalments rather than a single annual premium.
If I live in an area at risk of flooding, will I still be able to get insurance?
Currently, there's an agreement between the government and insurers that insurers will continue to offer cover to existing customers living in areas at high risk of flooding so long as the government commits sufficient money towards maintaining and improving flood defences.
Even if I don't live in a flood-risk area, will my house insurance go up?
Our research found the quotes we got for 2007 and 2008 showed no notable increase across the board. However, the Association of British Insurers says some companies have stated that premiums will rise due to claims in 2007.
How can I tell if my home's at risk of flooding?
The Environment Agency and Scottish Environment Protection Agency websites have maps showing areas of land that may be at risk of flooding from rivers and the sea. The Environment Agency also runs Floodline Warnings Direct, a service that provides free flood warnings by telephone, mobile, fax or pager.