Home Contents Guide

How to set your home contents sum insured

Written by Chloe Adams Managing Editor Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 16 September 2026 Our editorial standards →

How do I work out my home contents sum insured?

Add up what it would cost to replace everything in your home at today's prices, as if buying it all new. Go room by room listing furniture, appliances, electronics, clothing and valuables, then total it. That figure is your sum insured. Setting it too low triggers the average clause and cuts your payout, so be thorough and update it every year.

Key takeaways

Your sum insured should be the full replacement cost of your contents at today's prices.
Work room by room so nothing is missed; whole categories like clothing are easy to underestimate.
Use new-for-old replacement values, not what you paid or what the item is worth second hand.
Setting the figure too low triggers the average clause and reduces payouts.
Review and update the sum insured yearly and after big purchases.

Why the sum insured matters so much

The sum insured is the maximum your insurer will pay for your contents, and it is also how they judge whether you are properly covered. If it is lower than the true replacement value of everything you own, most policies apply the average clause and settle claims in the same proportion, even small ones. Getting the figure right is the single most important part of a contents policy.

The room-by-room method

The reliable way to reach a realistic figure is to walk through your home one room at a time and list what is in each. Do not forget:

Lounge and TV room: sofas, televisions, sound systems, gaming consoles.
Kitchen: fridge, stove, microwave, small appliances, crockery and cutlery.
Bedrooms: beds, wardrobes, clothing, shoes and linen.
Study and outdoors: laptops, tools, garden furniture and equipment.

Clothing, linen and kitchenware are the categories people most often undervalue, because the total across a whole household adds up quickly.

Use replacement value, not what you paid

Insure each item for what it would cost to buy a new equivalent today, known as replacement or new-for-old value. A five year old television might have cost less than a new model now, and prices generally rise over time, so old purchase prices understate the real figure. Working in today's prices keeps your sum insured aligned with what a full claim would actually cost.

Keep it up to date

Contents grow over time as you buy furniture, appliances and electronics, so a figure set a few years ago is probably too low now. Review it at least once a year and whenever you make a large purchase. When you compare cover, make sure each quote is based on the same, accurate sum insured, otherwise a cheaper premium may simply mean you are underinsured. You can compare quotes once your figure is set.

Frequently asked questions

What happens if my sum insured is too low?

Most insurers apply the average clause. If you are insured for less than the true replacement value, claims are paid in the same proportion, so a shortfall reduces every payout, not just total losses. That is why an accurate, up-to-date sum insured matters more than shaving a little off the premium.

Should I insure contents for new or second-hand value?

Most policies work on new-for-old replacement value, meaning they pay to replace an item with a new equivalent. Insure at that level so a claim actually covers a replacement. Some cover older items on an indemnity basis instead, so check which basis your policy uses.

Do I need to list every single item?

Not usually. Everyday contents are covered as a total sum insured rather than an itemised list. High-value items such as jewellery, art and laptops often need to be specified separately, especially for cover away from home. Keeping receipts and photos still helps if you ever need to claim.

How often should I update my sum insured?

At least once a year, and after any big purchase or renovation. Contents build up steadily, and prices rise, so a figure set a few years ago is often too low. A quick yearly review keeps you properly covered and avoids an unpleasant surprise at claim time.

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