Should I use replacement cost or original purchase price for my contents valuation?

Use replacement cost — the cost to buy an equivalent item new at today's prices. Most new-for-old contents policies pay replacement cost, not depreciated value, so your sum insured should reflect what it would actually cost you to replace everything today. For older policies on an indemnity basis, depreciation is deducted. Check your policy schedule to confirm whether you have new-for-old or indemnity cover.

Do I need to list every single item?

No — a room-by-room total is sufficient for most standard policies. You do not need an itemised list at the application stage. However, for items above your policy's single-article limit (typically £1,500–£2,500), you must list them separately as 'specified items' for them to be fully covered. High-value jewellery, watches, art, musical instruments, and electronics often exceed the standard single-article limit.

Does contents insurance cover items outside my home?

Standard contents policies often include 'personal possessions' or 'all-risks' cover as an optional add-on that extends to items temporarily away from the home — a laptop at a café, a phone stolen from a car. The standard home contents section typically only covers items while they are inside the property. Check whether you have personal possessions cover and whether it has its own limit and excess.

What happens if I discover I've been under-insured after a claim?

If your sum insured is below the true replacement value of your contents, the average clause may reduce your payout proportionally — the same mechanism that applies to buildings under-insurance. For example, if your contents are worth £30,000 but you are insured for £20,000, a £5,000 claim may only pay £3,333 (two-thirds of the claim). The ABI recommends updating your contents sum insured annually.

Consumer alert Home & property Published 2026-10-17 8 min read

How to value your home contents for insurance — and why most people get it wrong

Most people guess their contents value at renewal and guess too low. Under-insuring your contents means a partial payout at claim time. This guide shows a room-by-room method for arriving at a defensible, accurate figure.

Why under-valuing contents is a costly mistake

Contents under-insurance is more common than buildings under-insurance, partly because contents accumulate gradually and partly because no survey is required. Studies by the ABI consistently find that the average UK household underestimates contents by 30–40%.

The consequence is the average clause: if your contents are worth £40,000 and you are insured for £25,000 (62.5%), a £10,000 theft claim may only pay out £6,250. The indemnity principle and the average clause work together — see our article on home rebuild costs and under-insurance for a detailed example of how the average clause reduces claim settlements.

Room-by-room valuation method

Go through your home room by room and estimate the replacement cost of everything in it at today's new prices. The categories below are a starting framework — adjust for your household:

Living room

Television and audio equipment
Sofas and chairs
Coffee tables, shelving units
Games consoles, streaming devices
Artwork and ornaments
Rugs and curtains

Bedroom(s)

Bed frames and mattresses
Wardrobes and chests of drawers
Clothing (per person × rooms)
Jewellery and watches
Laptops and tablets
Books and media

Kitchen

White goods (fridge, freezer, washing machine)
Microwave, kettle, toaster
Coffee machine, other appliances
Crockery, cutlery, cookware sets
Food and drink stocks

Office / study

Desktop computers and monitors
Printers and scanners
Desk and office chair
Cameras and lenses
Musical instruments

Add a 10–15% buffer for items you may have overlooked. Revisit the figure whenever you make a significant purchase — a new sofa or laptop should trigger an update to your sum insured immediately, not just at renewal.

High-value items: what requires separate listing

Standard contents policies apply a single-article limit — often £1,500 to £2,500. Any single item worth more must be specified (listed by name and value) in your policy schedule to be fully covered. Items that commonly exceed the standard limit:

Jewellery and watches — especially engagement rings, inherited pieces, or watches above £1,500
High-end cameras, lenses, and photography equipment
Musical instruments (guitars, violins, keyboards)
Fine art, antiques, and collectibles
High-specification laptops and tablet computers
Bicycles (often excluded from standard cover entirely)

For specified items, keep a professional valuation (for jewellery), original receipts, or photographs with serial numbers. Without evidence, the insurer may settle at a lower figure or dispute the value entirely. See our guide to making a home insurance claim for what to document before you need it.

Contents valuation FAQ

Frequently asked questions

: Use replacement cost — the cost to buy an equivalent item new at today's prices. Most new-for-old contents policies pay replacement cost, not depreciated value, so your sum insured should reflect what it would actually cost you to replace everything today. For older policies on an indemnity basis, depreciation is deducted. Check your policy schedule to confirm whether you have new-for-old or indemnity cover.
: No — a room-by-room total is sufficient for most standard policies. You do not need an itemised list at the application stage. However, for items above your policy's single-article limit (typically £1,500–£2,500), you must list them separately as 'specified items' for them to be fully covered. High-value jewellery, watches, art, musical instruments, and electronics often exceed the standard single-article limit.
: Standard contents policies often include 'personal possessions' or 'all-risks' cover as an optional add-on that extends to items temporarily away from the home — a laptop at a café, a phone stolen from a car. The standard home contents section typically only covers items while they are inside the property. Check whether you have personal possessions cover and whether it has its own limit and excess.
: If your sum insured is below the true replacement value of your contents, the average clause may reduce your payout proportionally — the same mechanism that applies to buildings under-insurance. For example, if your contents are worth £30,000 but you are insured for £20,000, a £5,000 claim may only pay £3,333 (two-thirds of the claim). The ABI recommends updating your contents sum insured annually.