Contents insurance – Covers cover you against loss and damage for your personal possessions, in other words what you would take with you if you moved home, for example:
- Furniture – Sofas, tables, chairs, beds, carpets and curtains
- Electrical Goods – Televisions, Computers, hi-fi equipment, fridges, freezers and cookers
- Valuables – Jewellery, watches, mobile phones, cameras and laptop computers
- Money – Cash, Cheques and bonds
A contents insurance policy should provide cover against events such as fire, flooding, storms, theft and vandalism. Always check with your insurer to make sure such events are covered.
Many contents insurance policies provide personal liability cover, this will protect you if a claim is made against you or if you accidentally injure someone or damage their property.
If you work from home it’s unlikely that your contents insurance will not cover any losses due to business activity at home. Normally type of cover is included as an optional extra so you will need to enquire with your insurer.
A contents insurance policy is likely to provide cover for valuable items you take outside your home, like jewellery, watches, cameras and mobile phones. Some policies may provide you cover for valuable items whilst traveling overseas.
Unlike buildings insurance, a mortgage lender can’t insist that you take out contents insurance, therefore you’ll need to arrange a policy by yourself.
Most contents insurance policies are indexed linked, this is when the sum insured automatically updates itself taking into account the rising value of your contents on a inflationary basis.
A good contents insurance policy should provide accidental damage cover which will protect against loss and damage of items due to an accidental nature.
When buying contents insurance you will need to check the exclusions tied into your policy. These exclusions are likely to include:
- General Wear and tear.
- Structural damage, you will need buildings insurance to cover this.
- Negligence, failure to take care of your possessions.
- Being away, leaving the property unoccupied, normally for 30 consecutive days.
- Corruption by virus, to computers, laptops and other devices.
Most contents insurance polices have a single item limit, so for expensive items like jewellery you’ll probably need to take out extra cover.
A good contents insurance policy will automatically increase the level of contents sum insured during special events like weddings, birthdays, Christmas and religious holidays. This increase is to account for the extra contents you’ll have in your home, for example gifts.