Contents home insurance will cover items such as furniture, carpets, curtains and many may include the replacement of food. You may find that some policies will provide you with cover are outside of your home such as paying to replace items in your handbag should it be stolen.
Many eventualities are covered by your insurance policy and some of these are of greater importance than others and include: damage by fire or flooding, possible earthquake damage and vandalism and theft. Contents insurance policies do however have some exceptions and these will often include willful damage and damage caused by DIY so make sure that you you’re your policy carefully and are aware of this. Due to some items not be of such great value, it may be worthwhile replacing some items yourself and not making a claim on your policy.
Contents insurance policies sometimes offer an extension to insure items that would perhaps not normally be covered under the standard policy. Often this may come at an extra cost but may come as standard by some insurance companies so make sure to look out for this.
Many companies will offer you new for old cover which will cover the cost of replacing the item that has been damaged or stolen with a new version. This type of cover can cost a little more but it is worth paying the extra to insure expensive items such as furniture and electrical items. Exceptions that you may find often include items of clothing.
An indemnity policy provides an alternative to the new for old cover and will take into account any wear and tear to an item. When the item is replaced the cost of replacing it is then paid out but with a deduction for everyday wear and tear and for any depreciation.
Before taking out a policy of any type, make sure that you check your house thoroughly and are aware of the contents and their value so that you do not leave yourself inadequately covered. Any items that are not included with your policy plan, such as expensive artifacts and paintings should be checked to see if your policy provider offers extra cover for these items. It may be better to get these items insured separately with a specialist insurer.
The majority of contents home insurance policies will have insured sum linked to the rate of inflation to allow for the increasing cost of the items so that you are always sufficiently covered. You may however want to periodically check on the changing value of the more expensive items and especially if you have items that are particularly valuable.
David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.
