The Importance of Contents Insurance

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Is Contents Insurance Really such an Important Expense?

To answer this question we're going to have to pose a few more. What would you do and how would you feel if your valuables and other possessions were lost because of a robbery or a fire? How would you replace them? Do you really want to spend all your savings? Have you even got savings to spend on new items? One way of overcoming the problem of cost, when it comes to replacing items that have been stolen or damaged, is to take out a good contents insurance policy.

What is contents insurance?

Contents insurance is taken out to cover the financial cost of replacing or repairing personal possessions, household items, furnishings and other such things. Policies can be very different depending on the type of insurance policy, the insurance provider and the amount being paid in premiums. Generally, contents insurance can cover furniture, curtains, white goods, TV, computer equipment, clothing, jewellery, toys and sporting equipment. The items have to belong to the policy holder or family members who live in the property being insured. 

home and contents insurance

Different types of contents insurance

Basically, there are two types. New for old or replacement value insurance. The most popular is new-for-old cover as this provides the full cost of replacing items with new ones, even if the value is higher. This type of cover tends to mean paying a higher premium. Replacement value insurance will only cover the value of the items, most of which will be steadily depreciating year after year. 

Different levels of contents insurance cover

When you take out a contents insurance policy there are a number of different levels to choose from. The cheapest will give the bare minimum of cover and will define the events that are covered. For example, burglary or fire. The next level will offer a broader range of cover, often including accidental damage. This covers, for example, accidental breakages and stains on furniture or carpets. Another level up and you'll be able to cover personal possessions or valuables when they are not in your home. For example, a camera you've taken on holiday or sports equipment you've taken to the local gym. Brightside provide contents insurance as well as ​Brightside car insurance customer service number.

Types of cover

How much you can claim

There are usually fixed, unfixed or flexible limits on the amount you can claim for certain items. If an item is particularly valuable it would be wise to insure it separately. For example, an engagement ring that would cost £2,000 to replace may only be covered up to £500. One important step for such valuable items is to get them professionally valued. This proof of value will be needed if you want to list them individually or take out extra insurance. 

How much contents insurance is enough?

It is a common mistake for those taking out contents insurance to undervalue their possessions. One way of checking you've got enough cover is to make a contents inventory. Without writing all your possessions down it will be very easy to forget items. Keep the list up to date, adding new items when purchased or when gifts have been received. 
So there you have it. If you're thinking about getting your house contents insured, do it. It's a sensible investment and any premiums you pay will be set off against any claims you might make. And let's not forget, contents insurance will bring you peace of mind. You'll be confident that should anything happen to your possessions, financially you'll be protected.

Cost of contents insurance

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