We get many questions about Insurance from our customers. One of the most asked is “What is Contents Insurance?” or “Is contents insurance right for me?”
So with the confusion about this, and it being confused with Home Insurance, let us help clear the muddy waters on it.
Contents insurance is used to protect your belongings. Your contents are the things that could be taken with you if you decided to move house. This type of insurance offers no protection to the building that you reside in.
Types Of Contents Insurance
The two main types of contents insurance are replacement value and new for old.
The majority of policies offer new-for-old coverage. This means you are covered for the full cost of replacing lost or damaged possessions with new possessions, which have a higher dollar value.
A replacement value insurance policy covers only the value of your possessions – and the value of most items depreciates over time. With this depreciation it is very important that you make sure your policy is kept up to date.
What are you covered for?
A contents insurance policy protects your stuff against theft or damage from fire and flooding. This could include things like:
- Furniture – beds, sofas, wardrobes and dining tables.
- Entertainment – DVDs, CDs, video games, books and vinyl.
- Kitchenware – pots, pans, cutlery as well as microwaves, kettles etc.
- Soft furnishings – cushions, curtain and bedding.
- Electronics – TVs, DVD players, laptops, games consoles and digital media.
- Toys, ornaments and antiques.
- Clothes and jeweler.
The list goes on, and you’d be surprised at how much it all adds up.
Having enough contents insurance
If you have a replacement cost insurance policy, it is important to consider the cost to replace your belongings with new ones of like kind and quality. To determine an approximate limit, we suggest going through your house room by room creating a personal property checklist.
When looking at contents insurance policies, check what exclusions each insurer has on the policy.
And keep an eye out for what excesses are attached to make sure you’re not unwittingly paying over the odds.
Also, don’t blindly buy just because one policy is cheapest – make sure that what you’re getting will serve you well if you ever need to use it.
We hope that this answers the question of What Is Contents Insurance for you and we look forward to helping you with any other questions you may have.
AMC Insurance is your one stop for all your insurance needs. To find out more, visit us on facebook or call us today.