How Much Contents Insurance Do I Need? Calculating Your Sum Insured

What is the sum insured on a contents policy?

The sum insured is the most your insurer will pay for all of your contents combined. Contents means roughly everything you would take with you when you move: furniture, clothing, electronics, kitchen appliances, books, sports gear, bikes and valuables. The figure should reflect replacement value — what it would cost to buy everything new today — because most contents policies settle on a new-for-old basis.

What happens if your sum insured is too low?

If your contents are worth more than the sum insured, you are underinsured. Many policies then reduce not just a total-loss payout but every claim, in proportion to how underinsured you are.

An example: your contents have a replacement value of CHF 100,000, but you’re insured for CHF 80,000 — 80% of the real value. After CHF 10,000 of water damage, your insurer may pay only CHF 8,000, minus your deductible. You carry the difference, even though the claim was far below your sum insured.

Some insurers waive this reduction under certain conditions (for example, if your sum insured meets a minimum per square metre of living space). Your policy wording tells you whether that applies to you.

And if it’s too high?

A sum insured above your real value doesn’t pay out more: insurers replace the actual loss, not the number on the policy. You simply pay premium for cover you can never use. Households that estimated generously years ago and have since decluttered or downsized are often overinsured.

Per-square-metre rules of thumb: quick but rough

Many online calculators use a flat amount per square metre or per room. That’s a fast starting point, but it knows nothing about your home: a sparsely furnished 100 m² flat and one the same size with designer furniture, camera gear and two e-bikes have very different values. For a number you can rely on, you need an actual list.

Calculate your sum insured in 5 steps

• 1. Go room by room. Living room, kitchen, bedrooms, bathroom, office, hallway — and don’t forget the cellar, loft, garage and balcony.
• 2. List big items individually. Sofa, beds, wardrobes, TV, computers, coffee machine, bikes. Note today’s price to buy new, not what you originally paid.
• 3. Estimate small things in bulk. Clothes, shoes, books, crockery, bedding and tools as one estimate per room. This is where people underestimate most: one adult’s wardrobe alone easily reaches several thousand.
• 4. Check valuables separately. Jewellery, watches, art and cash are often covered only up to a limit. If yours exceed it, you need extra cover.
• 5. Add it up and compare. The total across all rooms is your replacement value. Compare it with the sum insured on your policy.

Worked example: a three-bedroom flat

A rough replacement-value tally might look like this (rounded, for illustration only):

• Living room (sofa, TV, shelving, rug, lamps, decor): CHF 14,000
• Kitchen (appliances, crockery, cookware, supplies): CHF 9,000
• Main bedroom (bed, wardrobe, clothes, shoes): CHF 18,000
• Second bedroom or office (furniture, laptop, monitor, books): CHF 11,000
• Bathroom and hallway (textiles, toiletries, coats): CHF 4,000
• Cellar and bike store (two bikes, sports gear, tools): CHF 9,000

Total: CHF 65,000. Someone who took out their policy ten years ago at CHF 45,000 would now be roughly 30% underinsured — without noticing.

When to review your sum insured

At least once a year, ideally before your policy renews. And after anything that noticeably changes what you own: moving, moving in together, marriage, a new baby, an inheritance, a major purchase — or a big clear-out.

How Vavaro helps

With Vavaro you add items room by room by photo, barcode or by hand. The AI estimates each item’s replacement value and resale value from prices in your country, and the app keeps a running total. Add your policy with its sum insured, deductible and valuation basis, and Vavaro shows your remaining coverage gap — or whether you’re overinsured.