As a starting point let's consider

Are there any children rushing around the house?

Perhaps you just need to cover your contents?

What type of house or flat do you live in and do you have any valuable items or just simple, basic furniture?

Are you accident prone?

Do you own the buildings?

Do you live in a flat or a bed sit?

Remember that you need to choose (for both home and contents) if you need, and can pay for a policy that includes accidental damage cover or if you can live with just the normal risks. .

Nowadays, most of the companies offering online home insurance calculate the minimum value of a building based on the type of building and number of bedrooms together with your post code. You are then invited to increase this valuation if your house is particularly well preserved or if it has additions such as a conservatory or converted loft. It should be remembered that this estimate is for the cost of rebuilding the house, it doesn't include the cost of the land that the house is built on.

When considering the contents there are two options. You could write down a list of everything you have and note beside it the replacement value (you want 'new for old' cover don't you?). If that sounds like an overwhelming task then you might consider a 'bedroom rated' policy i.e. the contents valuation is calculated from the number of bedrooms in the property. It saves a lot of work but you might be paying out a higher premium for higher sums insured than you need to.

Next, consider all those special and valuable items you have. If you have any valuable jewellery, antiques or works of art, I strongly recommend that you specify them as individual items on the policy. This will cost a little extra but it is well worth it. Before listing them, get a professional valuation for each piece (and if jewellery, gem checked) and get each piece photographed. Similarly with laptop computers, PDA's,bicycles, expensive camcorders and so on. In fact, anything of value that you take out and about with you.

Fourth, I recommend you include cover for unspecified items outside of the home. This option should also offer insurance to cover accidental damage for the items within your home. This is essential cover for everybody that ventures past their front door! It also covers you for your basic luggage whilst on holiday thus saving you on your travel insurance. And the cover is better! (Travel insurance providers always pays indemnity - i.e. item value minus wear and tear. Your unspecified items cover, if you follow my advice, is 'new for old' - except clothes).

Fifth - liability cover. In this age of blame culture this is essential. It is always provided free with your other cover. Make sure you have it on contents plus buildings if you are the owner. If you do not own buildings, then the liability cover on your contents policy is perfect on its own. It's a bit like having 'third party' cover on your car (although not legally compulsory).

Finally, there are the 'freebies' that many insurers now provide. Services such as free legal help lines and emergency assistance providers. My own experience of these services is none too favourable. I usually end up getting out the 'Yellow Pages'.

Now all you have to do is to buy the policy that you want. Chose an insurer that has a good reputation, even if the policy is slightly more expensive. (All of the insurance companies featured on our site have a good reputation !)..and of course they offer superb value for money.