▁co ins urance ▁requirement ▁of ▁ 7 5 %. ▁ ▁Cont ents ▁ins urance ▁▁ ▁The ▁contents ▁of ▁buildings ▁are ▁ins ured ▁either ▁separately ▁from ▁the ▁buildings , ▁or , ▁frequently ▁with ▁dwell ing ▁houses , ▁as ▁a ▁separate ▁part ▁of ▁a ▁combined ▁buildings / contents ▁ins urance ▁policy . ▁Whether ▁separate ▁or ▁joint ▁policies ▁are ▁used , ▁the ▁ins urance ▁claim ▁on ▁either ▁part ▁cannot ▁be ▁transferred ▁to ▁the ▁other , ▁for ▁example , ▁under ▁ins urance ▁of ▁the ▁contents ▁cannot ▁be ▁offset ▁by ▁the ▁claim ▁made ▁on ▁the ▁buildings ▁ins urance . ▁ ▁When ▁contents ▁ins urance ▁states ▁that ▁new - for - old ▁applies , ▁this ▁increases ▁the ▁lik elihood ▁of ▁under ▁ins urance . ▁For ▁example , ▁a ▁quantity ▁of ▁items ▁amongst ▁the ▁contents ▁might ▁have ▁a ▁low ▁res ale ▁value ▁but ▁a ▁high ▁new - for - old ▁value . ▁This ▁can ▁happen ▁if ▁quantities ▁of ▁used ▁or ▁second - hand ▁goods ▁are ▁collected ; ▁their ▁res ale ▁value ▁may ▁be ▁low , ▁but ▁to ▁replace ▁as - new ▁would ▁require ▁a ▁high ▁p ayout ▁against ▁the ▁policy . ▁In ▁such ▁a ▁case , ▁if ▁the ▁policy ▁is ▁subject ▁to ▁average , ▁any ▁claim ▁will ▁be ▁reduced ▁by ▁the ▁value ▁of ▁the ▁under ins urance . ▁Cru cially , ▁this ▁occurs ▁with ▁partial ▁loss ▁of ▁the ▁contents , ▁even ▁where ▁the ▁low - res ale ▁value ▁contents ▁are ▁completely ▁und am aged ▁and ▁may ▁even ▁be ▁stored ▁separately , ▁as ▁in ▁an ▁und am aged ▁ou th ouse