Look around your home and think about your possessions. You’ve probably bought them over a period of time, but what would happen if you had to replace them all at once? TV’s Sofas, Washing machines, Tumble driers, computers, beds and other brown and white goods. It all adds up to quite a sum. Contents Insurance is designed to protect you financially in the event that you have to replace all of these things because of a fire, flood or burglary at your home,
Contents Insurance – What’s covered?
Contents insurance protects the items in your home against loss or damage by a range of perils including theft or attempted theft, fire, explosion, lightning or earthquake. It will also insure you against damage caused by escape of water, storm or flood.
Your contents would include any item that you can pick up and take if you were moving home. This covers your furniture and electrical items as well as money and jewellery WHILST IN THE HOME. Contents insurance would also include items such as carpets and curtains, even though some people leave these behind when they move.
The majority of policies cover the contents of your home on a new for old basis. This means that if something is damaged by an insured event that the policy will pay out the value of replacing the items as new. There are normally some items (typically clothing and household linen) which are not covered on a new for old basis, so be careful to check your policy cover.
Do be careful if searching on line for cheap insurance as some insurers listed on quote comparison web sites will reduce the cost of their cover by offering insurance on an indemnity basis to get to the top of the screen. Indemnity policies are cheaper because any payout is not based on the as new value but is reduced to take into account wear and tear or depreciation in value.