Home Insurance Comparing Contents Coverage

Every homeowner in the UK is required to have building insurance for their homes; however, contents insurance is not necessary. Contents insurance, though, should be looked into by every property owner to complement their existing home insurance policy, as the cost of replacing goods and valuables can be costly. In fact, most of the risks posed to a home are also posed to that home’s contents, as well. Theft, fire, flooding, and subsidence can all result in the loss and damage of some of your most valuable possessions. Yet when most people go about finding contents coverage for their home, they do so in a way that could leave them underinsured or paying more in premiums than they have to. When looking at contents coverage along with home insurance, compare the details that best fit with your own particular needs and possessions. In this article, we will talk about what you need to know about contents coverage so you can choose the appropriate policy for you.

What does it cover?

Coverage policies differ from one insurance company to the next, but, generally, they will all cover the cost of replacing furniture, electrical equipment, jewellery, and other important valuables. Some insurance policies will also cover clothes, money, and fixtures such as sinks and curtains, but not all, so it is best to find the one that provides the most extensive coverage.

How to assess the value of your contents

When assessing how much your possessions are worth, most people tend to underestimate. This underestimation is unfortunate, as it means you will get far less should you choose to make a claim on any of your contents. The value of your contents is determined differently with different policies. The best thing to do is go around your home and make an inventory of all the items in your house, including garden furniture and anything in the loft. Calculate the cost of all these items, and add up the total. Check if your contents coverage includes “as new” coverage or an indemnity policy. With “as new” coverage, your items will be covered as if they were new, whereas an indemnity policy will take into account wear and tear and thus will provide less coverage. Obviously, “as new” coverage tends to be more expensive than an indemnity policy. Finally, some insurance policies will calculate the sum of your contents based on the number of rooms you have. While this coverage offers higher premiums, they can also lead to greater coverage.

Other things to consider

Obviously, the value of the contents of your home is going to fluctuate as you buy new products and throw out old ones. As such, make sure you keep your inventory and coverage policy up-to-date. Furthermore, the value of a home’s contents tends to rise during certain occasions, such as a wedding or around Christmas. Many coverage policies will take these events into account, but it is important that you verify that your particular coverage accounts for this added temporary value. Finally, while most insurance policies are linked to inflation, not all are. Make sure the value of your contents is constantly kept up-to-date, especially if your policy is not linked to inflation. Also, if you have a son or daughter who is off to university, your coverage may include their possessions as well. Lastly, if you want to pay less in premiums, investing in a home security system helps lower your risk of burglary, thus making you a safer bet for home insurance companies.

Losing your valuables due to flood, fire, or theft is not only traumatizing, but will likely lead to thousands of pounds worth of replacement costs. To mitigate these costs, it is important for you to invest in contents insurance. While contents insurance is not mandatory, it should be considered just as important to have as home insurance. When looking at home insurance, compare contents insurance as well. While contents coverage varies substantially between different insurance companies, they will all offer at least a minimum level of protection against the loss or damage of your most precious goods. Read the details of each contents policy carefully, as your own circumstances will likely effect how much you can claim should you need to do so. By investing in contents coverage, you can rest assured that you will be protected against the heavy cost of having to replace the valuables of your home.

Sam Jones the author suggests to readers to visit uSwitch.com for personal finance advice. Find the home insurance compare pages where all the main providers can be compared.