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It's completely understandable to worry about this. Flooding can happen quickly, and the thought of losing everything in your home is frightening. The good news is that there are practical ways to work out how much contents insurance you need, so you're not left trying to replace your belongings out of your own pocket.

The key is to calculate what it would cost to replace everything you own if your home were flooded and your belongings were all destroyed. Don't base the figure on what you paid for things years ago or what you think they're worth second-hand.

Here's how I'd approach it in New Zealand.

1. Work out what you'd need to replace

Imagine that you had to move into an empty home tomorrow and buy everything you currently own. Go through your home room by room and estimate what it would cost to replace each item.

Use the cost of buying an equivalent new item where your policy provides replacement cover.

Room or category	What to include
Living room	Sofas, armchairs, television, entertainment system, rugs, lamps, curtains and decorations
Kitchen	Fridge, freezer, microwave, kettle, toaster, pots, pans, crockery, cutlery and food
Bedrooms	Beds, mattresses, bedside tables, wardrobes, dressers, bedding and clothing
Bathroom	Towels, toiletries, hairdryers and other personal items
Laundry	Washing machine, dryer, laundry equipment and cleaning supplies
Home office	Computers, monitors, printers, desks, chairs and other electronics
Garage and storage	Tools, gardening equipment, bicycles, sports gear and camping equipment
Personal valuables	Jewellery, watches, handbags, artwork, musical instruments and collectibles
Miscellaneous	Books, toys, children's belongings, ornaments, suitcases and seasonal decorations

Don't overlook the small things. Towels, shoes, underwear, kitchen utensils, cleaning products and children's toys can add up to thousands of dollars when you need to replace everything at once.

Also include belongings belonging to other household members, where your policy covers them.

Consumer NZ explains the importance of estimating the total replacement cost of your belongings rather than simply considering your most valuable possessions. Read its house and contents insurance guide.

2. Use a contents insurance calculator

You don't have to price every single item yourself. Several New Zealand insurers provide free online calculators that estimate how much it would cost to replace your household contents.

Here are two places to start:

• NZI Contents Sum Insured Calculator — estimates the replacement value of your belongings based on information about your household.
• ASB Contents Insurance Calculator — helps estimate the cost of replacing your household contents.

These calculators can give you a useful starting figure in just a few minutes. However, they are estimates, so you should check whether they adequately account for your possessions, particularly if you have expensive furniture, electronics, jewellery or collections. nzi.co.nz, asb.co.nz

My recommendation: Use one calculator first, then check the result against the actual belongings in your home. If the estimate seems surprisingly low, investigate before settling on that amount.

3. Remember that replacement costs can be much higher than you expect

This is one of the biggest traps when choosing contents cover.

You might think your belongings are worth $40,000 because you've accumulated them over many years. But if you had to buy everything again at today's prices, the total could be considerably higher.

For example, imagine a household with the following replacement costs:

Category	Illustrative replacement cost
Lounge furniture and television	$8,000
Beds, mattresses and bedroom furniture	$10,000
Clothing, shoes and personal belongings	$8,000
Kitchen appliances and equipment	$7,000
Computers, phones and electronics	$5,000
Garage tools, bicycles and outdoor equipment	$6,000
Curtains, linen, towels and household items	$4,000
Books, toys, decorations and miscellaneous items	$4,000
Total	$52,000

These figures are illustrative only, not a recommended insurance amount. Your actual total could be much lower or substantially higher.

The important point is that you need enough cover to replace everything at the same time, rather than just enough to replace your biggest purchases.

4. Check that your policy actually covers flood damage

Because flooding is your main concern, this step is especially important.

Before choosing your sum insured, ask your insurer to confirm:

• Flood damage: Does the policy cover household contents damaged by flooding from heavy rain, overflowing rivers or surface water?
• Stormwater and runoff: Are there exclusions or special conditions for water entering your home from outside?
• Replacement cover: Will the insurer replace eligible belongings with new equivalents, or pay their depreciated, second-hand value?
• Valuable items: Are jewellery, watches, artwork, bicycles and electronics subject to individual limits?
• Temporary accommodation: If flooding makes your home uninhabitable, will your policy help pay for somewhere else to stay?
• Removal and storage: Is there cover for moving or storing your belongings if your home becomes unsafe?

Policy wording matters because cover and limits vary between insurers. Consumer NZ notes that comprehensive contents policies commonly provide a combination of replacement-value cover and present-value cover, depending on the item and policy conditions. Temporary accommodation benefits may also apply following a natural disaster. consumer.org.nz

One further point: New Zealand's Natural Hazards Commission (NHC Toka Tū Ake) does not cover household contents. You need to rely on your contents policy for those belongings, so make sure you understand its specific flood provisions. consumer.org.nz

If you're particularly worried about flooding, ask your insurer to explain the cover for your circumstances in writing.

5. Make sure expensive items are covered separately if necessary

Most contents policies have limits on certain categories of possessions.

For example, you might own a $12,000 engagement ring, an expensive camera or a valuable collection. Even if your overall contents sum insured is high enough, a policy's limit for that particular category might not be.

Check whether these items need to be individually listed on your policy, sometimes called specified items.

Also check whether fitted carpets and curtains are covered by your contents or house insurance. The distinction can vary between policies. consumer.org.nz, icnz.org.nz

6. Keep a record of what you own

This is a simple step that can make a big difference if you ever need to make a claim.

I'd suggest doing the following:

• Take a video walking through every room, opening cupboards and showing what's inside.
• Photograph expensive items individually.
• Keep receipts or order confirmations for major purchases where available.
• Save the photos, video and inventory somewhere outside your home, such as cloud storage.
• Keep a copy of your insurance policy and policy schedule.

You don't need to document every teaspoon. A video of your kitchen, for example, can help demonstrate how much equipment you owned before a flood.

Consumer NZ also recommends taking photographs and videos when documenting damage for an insurance claim. consumer.org.nz

7. Review your cover regularly

Once you've established a reasonable figure, check it at least annually and whenever you acquire significant new possessions.

Your belongings and replacement costs change over time. A sum insured that was adequate three years ago might not be enough today.

Remember, too, that the sum insured is generally the maximum amount available for a claim, subject to your policy's terms, limits and excess. You don't necessarily receive the entire sum insured just because you make a claim. nzi.co.nz, bnz.co.nz

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Let's work out how much cover your household might need

Rather than leaving you with a long list of things to calculate, I can help you build a more realistic estimate.

First, roughly how many people live in your home, and what sort of home is it?

For example, you could say, "Two adults and two children in a three-bedroom house."

That will give us a starting point for estimating the replacement cost of your belongings and identifying the items people commonly forget. We can then refine the figure to suit your household, without you having to list every possession individually.