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FAQ Home | General Questions | Critical Illness Insurance | Life Insurance | Home and Contents Hot Topics
Why is Contents Insurance so Important?Think about all the things you have in your house. Don’t forget the carpets and curtains, cooker, fridge, beds, furniture etc besides your personal effects and jewellery. Now imagine you return on night to find the whole house cleared out. Besides the grief and heart ache, what’s it going to cost to replace everything? It’s an enormous sum of money isn’t it? That’s why Contents Insurance is so important.The most frequent claims under Contents Insurance are as a result of theft, accidents in the home, burst and leaking pipes. But if you can still claim if vandals, storm, fire or flooding, falling trees or explosions, subsidence, landslip or land heave cause the damage. Even damage to contents resulting from a vehicle or aircraft crashing into your house is covered. Many policies will insure you for accidental damage caused by yourself. However, the extent of the cover does change between policies. So check out what cover is included. Ask about accidental damage to computers, hi-fi, videos, and TV’s and what about damage to mirrors and glass generally? You might well have to pay an optional extra to have these covered but it could be well worthwhile. (Claims for these may only be valid if the items are in the home at the time they are damaged.) Valuables like antiques or jewellery will almost certainly need to be listed specifically on your policy. Sometimes any item valued at more than £2,000 needs to be specified on the policy. (Incidentally, £2,000 is only a guide – limits do vary between insurers so please check out the limit for valuables on your proposed policy.) There will be an extra charge for insuring these specified valuables based on what type of valuable they are and their value. Also check out whether your possessions stored in your garage or garden shed are covered. And what about any garden furniture? Are they insured? You should specifically ask about these items as you may be surprised at their value. You may also be able to extend your insurance cover to “All Risks”. “All Risks” insurance covers any possessions (and sometimes a limited amount of cash) you take with you when you leave your house. Check your proposed policy. You should look out for policies that provide cover on a “new for old ” basis. This means that no matter how old or what condition the item was in before it was damaged or went missing, the policy will payout sufficient to enable a brand new item, of a similar or same specification, to be bought. If the cover is on a “replacement value” basis, you will receive less as the payout will be reduced to take into account the age and condition of the item. As you would expect, insurance on a “replacement value” basis is cheaper the “new for old” but we think the extra benefit is well worthwhile. Finally, many good Contents Insurance policies will also include public liability insurance. This is the type of insurance you would need if someone came to your house tripped on a toy and hurt themselves in the fall. They could make a claim against you and, as you probably know, such claims can be large.
Please specifically check out what your proposed policy includes. Conditions and levels of cover do vary between insurance companies. Frequently Asked Questions related to the above topic.
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