A POSITIVE knock on effect of the current property boom is the increasing competition between household insurers, all of them keen to get the new home buyers, in particular, as their customers.

Norwich Union General Insurance is the latest company to launch a new product, this one; is called KeyFifty, which offers automatic contents insurance that is the equivalent of 50 per cent of the building sum assured as well as other features such as security and age discounts, no "excess" on contents cover (many policies deduct the first £150 or £200 of a claim, as well as a 24 hour emergency assistance service.

What sets this policy somewhat apart from other insurers who also offer the automatics contents cover, is that Norwich; will give you a 10 per cent discount if you reduce the contents cover to just 25 per cent of the building sum assured. As general insurance companies keep reminding Family Money, there is no point in over insuring your contents since any claim benefits will be assessed on the replacement value of the item and not on the value you may have put on it, unless, of course the item is particularly valuable. (You will more than likely have to identify and insure that item separately on your application form anyway.)

This policy also includes fire brigade call out charges up to £500 as standard cover for the buildings and contents, something that should appeal to householders in counties where such charges are payable.

At between £2.50 and £3.10 per £1,000 insured (the higher value is for Dublin city and county) KeyFifty provides a very competitive rate. Minimum sum insured is £40,000 and the maximum cover is £250,000.

Home contents insurance is well worth shopping around for, say insurance brokers, and new buyers should certainly try and resist the sales pressure from the lender to take an all in one package of mortgage protection, building and contents insurance from their preferred insurer at least until they have the chance to check out the competition first.