What to itemise in the home

When you renew your house insurance you may think your contents insurance covers everything in your home – think again.

Most house insurance policies have a ‘high risk items limit’; this can vary widely between policies with some insurers having the limit as low as £1,000. Whatever the limit on your particular policy it is important to be aware of it.

Take a look around

There are many items in the average home that could potentially be worth more than your high risk items limit. These items can range from computer and audio visual equipment to antiques. Electrical equipment that may exceed the limit is often quite easy to identify as it is likely to have been purchased relatively recently. With regard to the latter, people are often unaware of how much that statue handed down from great aunty whoever may be worth; any such items should be taken to a dealer for a professional valuation.

Replacement price not current value

It is important to note that when talking about house insurance, in particular contents insurance, it is the price of replacing a particular item that should be of paramount concern to both you and your insurer, not its current sale value.

Paying the premium

It is important to note that you will have to pay a premium on any item that you value above your high risk items limit. The number of such items you possess may affect the type of policy you take out; if you only have one or two items it may be worth specifying each item; if you possess many high value items it may be more economical to simply take out a policy with a higher high risk items limit. However, even if you do have a large high risk items limit it may still be prudent to supply your house insurance provider with a list of your valuables; this will help avoid any disputes should you need to make a claim.