The value of taking right contents cover

Although the lazy way is to simply put an approximate figure based on the number of rooms, any claim is likely to come unstuck if this means you are under-valued as the insurer will simply reduce proportionately. This could mean you are seriously out of pocket.

If, for example, a policy was taken out stating that the contents value was 50,000 but the actual value was 100,000, you are under-insured by 50 per cent and so the insurer will only pay out half of any claim submitted.

Yorkshire has three of the top districts for home insurance claims, according to moneysupermaket: LS8 (Roundhay), LS15 (Austhorpe, Leeds) and BD10 (Apperley Bridge, Bradford). Last summer almost 80,000 domestic burglar claims in the UK resulted in 84m being paid.

Without a reasonably detailed inventory, an insurer cannot be expected to replace 'like for like' which is the essence of contents cover. Therefore at least annually, check a list and particularly review 'high risk' articles, which could include jewellery, watches, art pieces and pairs or collections worth more than 1,500.

With one in 10 households making a claim on their home insurance last year, ask your insurer which items need to be specified. Several budget insurers have low single article limits, such as just 1,500 with esure and Swiftcover and 2,500 with Swinton.

The fallacy is that 'high risk' items are automatically covered under the standard contents sum insured but you could be in danger of receiving substantially less than they are worth if you suffer theft, loss or damage.

Rias, which specialises in the over 50s age group, tips keeping photographs of all 'high risk' articles, to jog the memory and help in making a claim but also to assist the police. Detail any marks (such as on ceramics and silver) and makers' references (as with cameras).

Keep original receipts to prove ownership and past values. Do not rely on bank or credit card statements. A major insurer in the student market was noted for not accepting anything other than receipts as evidence.

The garden, particularly at this time of year, can be greatly underinsured. Endsleigh only cover for 300 and both Barclays and Swiftcover up to 500, taking a 50,000 overall contents example, according to website moneysupermarket.com. Rias protect to 750.

By comparison, NFU Mutual cover items you may have in the garden for up to 2,500, even if they normally belong inside. They cover trees, plants and shrubs up to 2,000 and treat the garden as simply another room in your home.

Remember to calculate not only garden furniture, barbecue, greenhouse contents, mower, tools and anything planted.

Ask also about garages. Some insurers just do not see the value of power tools, push bikes, contents of chest freezers, even a set of golf clubs. Again, NFU Mutual has a realistic approach, applying 5,000 as standard.

If going on holiday, check that baggage is covered outside the home and to what level per object. This is vital when taking 'high risk' articles, which may need to be individually listed. In turn, it may be possible to enjoy a useful saving on your travel insurance by deleting the baggage section although this will not cover for any delays.

Saga protects those who opt for 'personal belongings in and away from home cover' up to 1,000 per item (5,000 total unspecified). The firm uses 10 underwriters and offers an excess up to 2,500.

With 14 per cent of women spending over 500 on a handbag and 32 per cent paying 150-500, a separate insurance policy to cover a handbag and its contents sounds intriguing. Annual rates start at 60.36 to protect up to 800, rising to 244.36 for 2,500 cover, with

insure4everyone. This gives 60 days worldwide cover with 50 excess (the first part of any claim which has to be stood).

Part of the appeal of such a policy is that any claim will not jeopardise the overall contents cover with the risk of a higher premium next year. The policy is underwritten by Great Lakes.

Problems can arise as they had not been expected and insurers'

solutions vary considerably, notably:

n 'New for old' if a replacement item cannot be repaired, such as a broken mirror, and if this includes clothing and household linen.

n Is accidental damage covered and does it include everyday household electrical items? Is this extended to breaking a pair of spectacles or hammering a nail through a pipe?

n Are matching pairs or sets of items (like earrings or three-piece suites) replaced if they cannot be repaired or individually replaced?

n Does the insurer insist on replacing claimed goods or can a cash settlement be requested?

Some claimants prefer to have items replaced as quickly as possible which is where an insurer's agent can be helpful. Others like to have the option to add some money to ensure the latest or superior version, such as a camera or television.

With personal belongings, like jewellery, a cash settlement may be best but the insurer may only pay a discounted sum which equates to the amount they would have paid to a preferred supplier (as with Barclays, Legal & General, Lloyds TSB, MoreTh>n and Swiftcover).

Consider the support a potential insurer will give in the event of a claim.

"Benefits of going through a third party provider include an independent personalised service from branch to direct customer advisers," says Andy Lay, head of branch operations at Skipton Building Society.

No claims discounts are available, such as up to 30 per cent with Regal, which is the trading name for Castle Cover. It offers contents up to 500,000 and personal possessions globally up to 5,000.

Insurers who offer higher cover include Hiscox (notably its 606 policy) and Sterling.

Premiums are rising above the rate of inflation. If a renewal rate is suspiciously high, check if any available discounts have been applied and also compare rates online although policies can differ.

New customers often attract special discounts, such as 30 per cent by telephone and 35 per cent online with Tesco which is off full price premium, which most customers will not be charged until their third year.

Combining contents cover with buildings insurance can also bring savings of up to 50 per cent but a specialist with one is unlikely to be with the other.

Which? carried out a survey of 5,340 people in March-April on customer service, excellence of product and ease of quotation for contents insurance, which gave the highest scores to Hiscox for its 505 policy (80 per cent), M&S Money and NFU Mutual (both 78 per cent), Greenbee (John Lewis) and Nationwide (both 71 per cent), followed by Frizzell, LV= and Co-op Insurance.