Why Is Contents Insurance Necessary?

Summary:  
home insurance quotes cover everything removable in your house.  Find out what it would cost to replace your belongings.  You can choose to pay more for further insurance.

Look around your home and observe the portable objects that you take for granted, like the furniture, your clothes, jewellery, computers and TV’s, even the meat and veg in your freezer. Oh and don’tDon’t miss out the lawn mower if you keep it in a secure shed in the garden.  And savings you may keep in the cookie jar, up to around £300 maybe. These things constitute the ‘contents’ for insurance purposes and they should be insured against damage or loss.

It is not compulsory to have contents policies so getting a home loan would not depend on having it, but it’s extremely significant.

Consumers generally claim if their property has been stolen or damaged, but contents cover would normally also protect against circumstances such as a fire, an explosion, vandalism or damage due to water leaks or overflows.

The cost of changing the locks is normally included in a contents policy if your bag was stolen with the house keys in it. 

Accidents can and do happen, and most insurance policies will pay out for a broken mirror for example.  You have to indicate and pay extra to include damage to electronic gadgets, so check the terms in the insurance policy thoroughly to be sure you are receiving the protection you require.

You can choose an ‘all risks’ extension to your home and contents insurance policy which covers damage or loss to your possessions, when you are away from home.  Items like jewellery, cameras , binoculars or even your spectacles.

Most covers contain personal liability insurance which pays out if a visitor hurts themselves on your premises, or if you damage someone else’s possessions on their property.  This claim could be for up to £500, 000 .

Some insurances have conditions such as increasing your insurance cover around Xmas when you expect to have more presents around, also for a few weeks either side of a family member’s wedding so the wedding gifts are well covered. 

Another benefit for families whose children are away at university is when your home and contents insurance covers their individual possessions and household items where they live.  The cover could be for up to 12% of your total sum insured.

If you run a business from your house you will need a further policy,  as many home and contents policies exclude cover for this.

The more insurance you wantthe more expensive your payments. The amount you are covered for is the limit the life insurance company will pay out, even if all you possess is ruined.  So you deliberate  carefully and sum up the value of your goods.

It’s hard to know the cost of your possessions but you need to have a rough idea in order to insure them properly.  Go through the whole house – loft, garage, shed, everywhere, and make a list of everthing.  Find out the replacement cost of your belongings.  It could come as a shock!

This doesn’t  apply to bedding, towels or clothes for instance, as wear and tear is deducted from the cost of new.  Cheap Life Insurance companies sum up the cost of a suit, for example, by taking off a third of the original cost for every year you have owned it.

Lots of the insurers offer discounts for having lock on doors and windows and a burglar alarm, for example, or to people who have not made any previous claims.

Like this post? Subscribe to my RSS feed and get loads more!