Contents insurance is vital. But what exactly is it and what does it cover?
Contents insurance is one of two aspects of home insurance. The other is buildings insurance.
Contents insurance is a policy that will pay out if items in your home get damaged or stolen.
It will sometimes also cover limited accidental damage. Your policy document will draw a clear line between what is and what is not covered. You can often increase the scale of this cover, but this will cost you extra.
Why do I need it?
In the event that your home is burgled, or items are damaged by fire, you’ll want to get replacements. A contents insurance policy lets you do this without digging through your own pockets.
Always look carefully through any proposed policy. Ensure that you have enough cover for your needs.
What is not covered?
Your policy document will detail any limits to the amount of cover you have. Your home insurer may refuse to offer cover for very rare or valuable items.
There may be certain exclusions to cover. These will be detailed in your policy document. You should also be aware that you will need to pay an excess in the event of a claim.
Contents insurance doesn’t cover damage to the structure of your property. You need buildings insurance to cover this type of incident.
Contents and buildings insurance are sold together fairly often. Buying home insurance this way might reduce your overall premium.
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I rent. Do I need contents insurance?
In short, yes. Your landlord will have a buildings insurance policy in place. They probably also have a policy to cover things like the carpets and white goods. This won’t cover your possessions though.
Having your own contents insurance will cover the cost of replacement or repair of the items you own. You should declare any extremely costly items to your insurer to ensure that they will be covered.
You may need to pay a slightly higher premium for doing covering these items, but it’s likely worth it for the peace of mind.