Types of Coverage
This is the cover that you'll want to have if you're clumsy. If you splash paint all over your brand new Persian rug or your child knocks over your favorite crystal vase, then you'll want to purchase this plan.
This insurance covers all items that can be taken out of the home including jewelry, cell phones, cameras and anything else you might take from your residence.
This type of cover protects high value items and is usually standard, but only up until about ₤1500.
This is a temporary addition that increases the amount of your cover by about 10% - 20% during specific events or times of the year such as during a family gathering such as a wedding, the birth of a child or Christmas (times when you may have additional items of value in your home.)
Contents and building insurance cover is a policy type that pays for the loss of possessions within the home. Your home's contents can include virtually anything that isn't part of its permanent structure, from electronics to furniture and anything else you own and keep inside. Contents insurance is typically purchased in addition to home insurance, but it can also be bought by itself by renters who live in homes already protected by a landlord's policy. Risks like fire, flood, and theft can all lead to major personal property losses, and experiencing one of these loss events without cover can be devastating.
But with a sound contents insurance plan, you can be prepared ahead of time. No matter what kind of building you live in, whether it's a townhouse you own or a rented flat, you can get the essential protection included in this plan. Contents cover includes policies of numerous types, each adding a different area of protection for covered policyholders. Even with this great protection there are also limitations and exclusions to consider for anyone who avails insurance cover of this sort. Understand these limitations and also the things you can do to limit your premium and save money and you could end up with a much better value on your insurance plan.
Types of Contents Policies
There are two different basic types of contents insurance plans, plus several optional additional types that policyholders could choose from. Each adds its own special measure of protection and covers you in a specific way. Indemnity cover is the most basic and inexpensive plan available. This cover provides a payout based on the current market value of the lost or destroyed items. Market value is a value based on depreciation; so in the case of a computer lost in a fire, even if it was only a year old you'd get much less than what you paid to purchase it in the first place.
New for old is a significant step up from indemnity cover in its value but also in its price. Under this policy type, lost items are repaired or replaced with new ones if they are irreparable. New for old uses the current price for new items in its payouts. So, in the case of that year old computer you'd get the money it would take to replace it with an equivalent new one on the market today rather than some assessment of its depreciated value. New for old is a major step up from indemnity cover, and is well worth considering even given its higher cost.
There are additional types of contents insurance that consumers might also consider adding to their policies. Accidental damage cover takes care of losses that the policyholder causes to their own property, such as knocking that computer off your desk and breaking it. All risks cover protects anything you might take out of the home including jewelry and cell phones. It is a great option for business travelers and others, but it is the most expensive form of contents insurance. High value cover provides special protection for individual items worth a lot of money; and special occasion cover provides a temporary plan that increases the limits of your plan during specific times such as the holidays or a family reunion when extra guests might be at your house.
Limits and Exclusions to Cover
It is important to note that no matter what combination of contents plans you choose to elect, there are going to be limits and exclusions to this protection. The limits are the maximum financial value of cover that the policies provide. Different providers carry plans with different limits, so be sure to pay attention to this when getting quotes. In the same manner, exclusions to cover narrow the protection that is offered by specifically ruling out payouts in certain situations. There are many examples of exclusions that it pays to check on prior to purchasing a contents insurance policy. Examples could include theft without forced entry and damage due to acts of terrorism.
Content Policy Premiums and Discounts
When you get ready to compare insurance plans and providers, the goal is to avail a plan that provides the most comprehensive protection for the most affordable price. Many factors such as your age, claims history, and the value of the contents being insured will impact your insurance premium. Some providers offer premium discounts that can help save money off the bottom line. Security systems, no claims bonuses, and other things sometimes lead to discounts on contents insurance. Use our free quote form and examine contents cover being offered by some of the best and most affordable insurance providers in your region. Save on contents insurance by understanding what goes into a policy and how to get the most out of it.
With this type of insurance, destroyed/damaged item(s) are repaired... More »
New for old insurance replaces your damaged goods with brand new... More »
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