Contents insurance covers your household possessions such as jewellery, electronic goods, furniture, carpets and clothing against theft, loss and damage. Contents insurance is not necessary but it is essential if you want to protect your valuables which you have paid a lot of money for over the years.
Generally, there are two types of contents insurance available; indemnity policy and ‘new for old’ policy. The indemnity insurance is the cheapest available and covers items by a wear and tear policy. For example, if a carpet was spoilt by paint then the claim would reflect how old the carpet was and pay out accordingly. On the other hand, ‘new for old’ policy is more expensive but would pay the full amount for a brand new carpet.
Many content insurance providers offer an accidental damage option as standard but usually you will have to pay extra if you want this cover. Cover for extra items can be bought if needed such as expensive jewellery, antiques and also your fridge freezer in case of power failure which means you can claim for the contents of your fridge.
Home contents insurance can also include the following things that don’t necessary stay at home:
- Mobile phones
Always check with your home insurance contents provider for what you are covered for under your policy or read the small print that is attached with your paper work.
Bear in mind that it is possible to combine buildings and contents insurance together and obtaining a quote. This will often get you a good deal and save you hundreds of pounds.