Introduction to Contents Insurance

Contents insurance is a type of home insurance. Your belongings that are not actually a part of the physical structure of your house are not protected by buildings insurance, which is usually compulsory if you need to take out a mortgage. Contents insurance is there so you do not have to pay all the costs of repairing or replacing your things if they are stolen, destroyed or damaged by flood or fire.

There is a huge range of home insurance products on the market. Some will cover your possessions, such as your mobile phone, even when you are not at home, while others offer minimal cover for a low premium. The cost of the home insurance policy you buy will certainly reflect the level of cover it gives.

The cheapest type of contents insurance is indemnity insurance, which will pay only what your damaged or lost property would have been worth to sell. This means that if your one year old camera is stolen, you would only get the price of a one year old second hand camera, and not what it would cost you to buy a brand new replacement. You may decide it is worth paying a little more for a new for old policy that pays you the money to buy a new replacement for your old damaged or stolen goods.

Make sure that your expensive belongings are covered. Your contents insurance will have a maximum value, so if you own anything that is particularly valuable or that exceeds the maximum value, you may need to insure it separately. Laptops for example are often stolen because they are portable and easy to sell on, so some policies exclude them or require that 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.

Article Source: http://www.thecontentcorner.com

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