What Sum Insured Guide

Your Policy will cover the full cost of repair or replacement if your Building or Contents are damaged or destroyed regardless of their age or original purchase price.

This section will help you work out how much to insure both your Buildings and Contents.  If you need any further advice or assistance, please contact the office who will be pleased to help.  Once you have decided on your sums insured, you should still check your sums insured yourself from time to time – particularly if you improve your home or acquire new possessions.

THE CONTENTS OF YOUR HOME

How much should I insure for?

The full replacement cost of the contents of your home.

How to work out full replacement costs?
Short of a full professional valuation, the best way is to go through each room in turn, adding up the likely replacement cost of each item.  Note down your estimate in the checklist below.

Many things – family and house size, special possessions etc, affect the total value of your Home Contents, and no two households are the same.

What about jewellery and other personal possessions?

Items of value for which cover is required outside your home and for travel/holiday purposes should be insured under the Contents - All Risks Section of the Policy.  Items of ‘minor’ worth are insured as Unspecified Jewellery, Clothing, Baggage and Personal Effects up to a value of £1,500.00 per item automatically.

Items of higher worth must be specified individually and we may require a professional valuation or purchase receipt for these items.  This helps to avoid problems if items are lost or stolen.

THE BUILDINGS OF YOUR HOME

How much should I insure for?

The full cost of rebuilding your home. Our guide figures are shown in two rebuilding cost tables: -

Option 1

£180 - £190 per square foot – in respect of average dwellings and includes double glazed windows and basic central heating, bathrooms and kitchens.

Option 2

£230 - £240 per square foot – in respect of one-off architect designed houses or granite built houses, which have a higher standard of design and finish.

In both cases professional fees and cost of demolition are included.

You will also need to allow extra amounts for a separate garage or outbuildings and for special items such as expensive garden walls or a swimming pool, all of which will be included in your Buildings cover provided you have allowed for them in your sum insured.

But why rebuilding costs?

If the buildings of your home are damaged, your Buildings Policy will pay the full cost of any repairs, even up to complete rebuilding if necessary.  We expect you to work out your sum insured on the same basis.

How to work out the rebuilding cost
Use the options of rebuilding costs shown above.  The options are based on local Building costs and will guide you on the rebuilding cost of different types of houses in the Island.  Of course houses do vary in design and construction and the figures can’t be accurate for all properties.  If you feel your home has any unusual features, you may want to obtain a professional valuation.