How to Calculate Your Home Insurance Coverage Needs: A Step-by-Step Guide


When purchasing home insurance, it’s crucial to have the right amount of coverage to protect your home and belongings adequately. Over-insuring can lead to unnecessarily high premiums, while under-insuring may leave you financially vulnerable in the event of a claim. In this blog, we’ll guide you through calculating your home insurance coverage needs, ensuring you’re neither over nor under-insured.

Step 1: Determine the Rebuilding Cost of Your Home (Buildings Insurance)

To calculate your buildings insurance coverage, you need to determine the rebuilding cost of your home. This figure represents the amount required to rebuild your property from scratch, including materials and labour costs. You can obtain an accurate estimate by:

  • Hiring a chartered surveyor to conduct a professional valuation
  • Using an online rebuilding cost calculator from a reputable source, such as the Royal Institution of Chartered Surveyors (RICS)

Remember, the rebuilding cost differs from the market value of your home, which includes factors like location and land value.

Step 2: Calculate the Value of Your Personal Belongings (Contents Insurance)

To determine the amount of contents insurance coverage you need, create a comprehensive inventory of your personal belongings. Go room by room, listing each item and its approximate value. Don’t forget to include items stored in your garage, shed, or attic. Some tips to help you with this process:

  • Take photographs of valuable items as evidence of their condition
  • Keep receipts, especially for high-value items, to prove their value
  • Regularly update your inventory, as the value of your belongings may change over time

Step 3: Consider Additional Coverage for High-Value Items

Most home insurance policies have limits on the coverage for individual items. If you have high-value possessions, such as jewellery, artwork, or expensive electronics, you may need to purchase additional coverage to ensure they’re adequately protected.

Step 4: Factor in Liability Coverage

Liability coverage protects you against legal expenses and compensation claims if someone is injured on your property or if you accidentally damage someone else’s property. Consider your potential liability risks and ensure your policy includes sufficient coverage.

Step 5: Compare Home Insurance Quotes with SortMyCash and Go.Compare

Now that you have a better understanding of your coverage needs, use SortMyCash and Go.Compare to compare home insurance quotes from over 60 UK home insurers*. This will help you find a policy that provides the right amount of coverage at the best price.

Click here to start comparing home insurance deals with Go.Compare Home Insurance today!

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