Each policy is unique. A lot depends on your final home insurance premium - external factors, the owner, the location, and various risks. But the property itself is a significant factor. So how do you calculate the value of your asset?

• Building

   There is a common misconception that the value of the building is either the original purchase cost or the current market value of the property. It is not the case for building cover under home insurance. The structure or property value is determined by calculating how much it would cost to rebuild the property. It assesses the risk and cost in case the property is damaged. This may eventually determine your insurance premium.

• Home content

  Your home contents value is based on the current value of all of your assets in this category. To explain it another way – it is the cost you will incur if you ever need to replace your home content.

• Personal belongings

  Quite similar to home content, your personal belongings are valued by the amount it would take to replace them if they are ever damaged, stolen, or destroyed. However, not all personal belongings have a static or depreciating market value. Personal belongings such as jewellery and art pieces have appreciating values. In case of insuring these personal belongings, you should have them valued and reassessed every year to make sure their value is updated in your insurance policy.