Home contents insurance exists to cover the cost of possessions should they be lost, stolen or damaged by flood or fire. According to the Association of British Insurers (AIB), 76% of UK households have a contents insurance policy.
Protecting your assets
Insurance premiums vary from company to company and are also dependent on the value of the contents that you wish to insure. If your insurer believes that you don’t have sufficient security in your home then they might refuse to pay your claim. If you have invested in security solutions to protect your property you should inform your insurer as these precautions might bring down the cost of your premiums.
Getting the best from your policy
According to an article on the Which magazine website you should always ask your insurer for all the details about your contents cover. You might assume that all of your personal possessions are covered only to discover that because you lost your laptop or tablet when away from your house, you can’t claim on this loss. If you do take valuable possessions away from your home on a regular basis you should ask your insurer about a personal possessions extension.
If you damage your new carpet with indelible ink or another type of permanent stain, you’ll probably wish to make a claim. When applying for contents insurance make sure that accidental damage is covered and ask about the value of this cover. You may have to pay an extra sum in order to protect your property from all types of accidental damage.
Valuing your goods
Contents insurance covers the cost of replacing your goods on a new for old basis.
If you have an indemnity policy, though wear and tear of an item will be taken into account, these policies command lower premiums, but if you have to replace an item your claim mightn’t cover the cost of this replacement.
If you have any high value goods, then you should always state their value to your insurer. You’ll probably have to pay a higher premium and an item of sentimental value is nearly impossible to replace, but at least you’ll know that your possessions are protected.
Contents insurance doesn’t cover everything
When taking out a contents insurance policy never make an assumption, always discuss openly and honestly the items that you which to cover as these won’t necessarily be part and parcel of your policy.
According to the Money Advice Service website should your computer be damaged by a virus and you lose all of your photos, personal banking details and other information your contents insurance won’t protect you. You will have to ask your insurer about this danger and see if they will offer your separate protection. Make sure that you go through the list of exclusions on your policy before you actually buy the policy.
Sometimes price comparison sites don’t offer the best deals, so go directly to a reputable company. Review sites are useful as you can read about genuine experiences from members of the public and this will help you come to a decision about which insurer you should choose for your contents insurance.