Contents Insurance Explained

By Author: Foster Carr
Total Articles: 30
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Contents insurance is a part of home insurance. Your possessions that are not actually a part of the physical structure of your home are not covered by buildings insurance, which is compulsory when you take out a mortgage. Contents insurance is however essential if you want to protect yourself financially against the cost of replacing or repairing your belongings in case of damage or theft.

There are lots of different of home insurance products on the market so you should be able to find a policy with the right level of cover to suit your needs. Slightly more expensive policies usually give more protection, for example some insure items such as laptops and cameras even when you are away from home. The cheaper policies will give basic cover, but the price of the home insurance policy you buy will usually significantly affect the level of financial protection you get.

The cheapest type of cover is known as indemnity insurance, and will replace like for like, meaning that if your two year old sofa is damaged, you will only be given the value of a two year old second hand sofa. More expensive, but possibly worth the ...
... cost, are policies that give you the money to replace your old damaged or stolen goods with new ones.

Make sure that any valuable items are covered. Your contents insurance will have a maximum value per item and a maximum total payout, so if you have any that is particularly expensive or that would take you over the maximum payout, you may need to insure it separately. Laptops for example are expensive items that are attractive to thieves because they are portable and easy to sell on, so some insurers do not include them in standard contents insurance policies and make you pay a supplement.

If you do need to make a claim, you may have to prove the value of the goods you wish to replace, so keep receipts and valuation certificates. Some advise that you even take photos of your belongings as an easy way to record what you own and what condition your things are in.

Dont forget to consider your garden when purchasing contents insurance. Think of your garden as a room in your house. Some of the items in your garden, like your greenhouse, are likely to be covered by your buildings insurance, but garden furniture and even plants may be covered by contents insurance.

Finally, you may wish to consider insurance against injury to visitors to your home which may result from any failure on your part to maintain your property. Sadly there have been instances of friends suing friends following accidents in their homes, and without cover, these unfortunate hosts have in some cases been left with hefty bills.

Find out how you could save on your household, building and contents insurance cover with Kwik Fit's Home Insurance.