Introduction
Home contents insurance cover is a type of insurance policy that protects the possession in your home from theft and damage. Home contents insurance will typically cover damages to assets as a result of fire, earthquakes, explosion, lightning, flooding, storms, falling trees, and host of other natural calamities and accidents. However, there are optional extras, which cover a wide variety of financial needs:
Step 1
Content Insurance Optional Extras
Personal possessions: this home contents insurance optional extra will provide coverage for your personal possessions while away from home. Though, the types of items that qualify for this cover are somewhat limited, but typically include small portable items like digital camera or handbag.
Accidental damage: this extra will cover electronic equipment, such as a stereo or TV, from accidental damages.
Legal expenses: this extra will cover the cost of legal proceedings while defending a case or bringing a lawsuit, as a result of a personal injury, employment or property dispute, as well as for any settlement on the legal costs accrued by the other party.
Downloaded property coverage: this extra allows you to protect virtual possessions, like downloaded music, movies, and software, from theft.
Step 2
Content Insurance Exclusions
There are certain limits that stipulated for home contents insurance coverage. This exclusion usually applies to high value items like audio visual equipment and jewelry. If you possess a lot of high value items in your house, check with your insurer on the amount of coverage they can provide for your assets. Some policies will not cover claims arising from the operations of your business, if you work from home. Other exclusions include losses due to theft if you have sublet your house, damages which occur if you have left your house unoccupied for some days, etc. It therefore important to read through the insurance policy, to ensure that it provides the protection you are looking for.
Tips
Types of Content Insurance Policies
There are a number of home contents insurance policies you could choose from. They include:
New-for-Old Policy: this cover will either pay for the cost of repairing damaged items, or pays to replace them with a new or equivalent item, if they are destroyed or stolen.
Indemnity policy: this policy is similar to the first one, except that it deducts a portion of the payout due to depreciation or wear and tear.
Sum-insured policy: this policy allows you to determine the amount of coverage you need, after which you insurer will calculate your premiums on that basis.
Bedroom-rated policy: this policy is based on the number of bedrooms there are in your house. Though, it does put a cap on the amount of cover it can offer.
Sources and Citations
Content Insurance Shopping Tips
Shopping for the right home contents insurance policy is not simply a matter of valuing your assets and searching for the cheapest policy available. Insurers provide a variety of policies, to suit different customers. Therefore, it is vital that the policy you select is able to provide the right amount of coverage for your prized possession. Make sure to read through the policy, so as to be conversant with its terms and conditions.
