Contents Insurance made clear

Contents insurance is a type of home insurance. Your belongings that are not actually a part of the physical structure of your house are not protected by buildings insurance, which is usually compulsory if you need to take out a mortgage. Contents insurance is there so you do not have to pay all the costs of repairing or replacing your things if they are stolen, destroyed or damaged by flood or fire.

There is a huge range of home insurance products on the market. Some will cover your possessions, such as your mobile phone, even when you are not at home, while others offer minimal cover for a low premium. The cost of the home insurance policy you buy will certainly reflect the level of cover it gives.

The cheapest type of contents insurance is indemnity insurance, which will pay only what your damaged or lost property would have been worth to sell. This means that if your one year old camera is stolen, you would only get the price of a one year old second hand camera, and not what it would cost you to buy a brand new replacement. You may decide it is worth paying a little more for a new for old policy that pays you the money to buy a new replacement for your old damaged or stolen goods.

Make sure that any valuable items are covered. Your contents insurance will have a maximum value per item and a maximum total payout, so if you have any that is particularly expensive or that would take you over the maximum payout, you may need to insure it separately. Laptops for example are expensive items that are attractive to thieves because they are portable and easy to sell on, so some insurers do not include them in standard contents insurance policies and make you pay a supplement.

If you have to claim on your insurance, your provider might ask you to prove the value of the items you want to replace, so keep receipts and valuation certificates. Some insurers recommend that that you even take photographs of your possessions which is a simple way to prove what you own and the condition your things are in.

Dont forget to consider your garden when purchasing contents insurance. Think of your garden as a room in your house. Some of the items in your garden, like your greenhouse, are likely to be covered by your buildings insurance, but garden furniture and even plants may be covered by contents insurance.

Finally, you may wish to consider insurance against injury to visitors to your home which may result from any failure on your part to maintain your property. Sadly there have been instances of friends suing friends following accidents in their homes, and without cover, these unfortunate hosts have in some cases been left with hefty bills.

Find out how you could save on your household, building and contents insurance cover with Kwik Fit's Home Insurance.