Home Contents Insurance


In this article relating to home contents insurance and basic home insurance cover, we aim to explain in as much detail as such a short post will allow, the different aspects of the two, in particular what these policies should actually include and what they will not.

Many homeowners are unaware of the finer details of such policies, even though they may have had a comprehensive policy in place for several years previously.

Homeowners often discover to their surprise when they are actually at the point of changing providers, that many items they thought would have been covered if a disaster struck actually were not.

It is important to always remember that the actual building itself is not covered at all. For example, if a stolen truck destroys your bedroom one morning, your home contents insurance simply will not pay out for any structural repairs that may be required as a result. Many people are under the misapprehension that their home contents insurance will pay for external damage. Such damage is covered by your buildings insurance, a mandatory policy that those with a mortgage must take out since the lender will not lose out if indeed the property ever becomes a total loss.

This is why most home insurance policies should show a cover figure of at least twice the purchase value of your home, but more on home insurance in a later article.

Home contents insurance can also cover personal items such as jewelery, diamond rings and even cash. These values will be written into your policy at the point of sale, so always be sure to take an inventory of all of your expensive items that you have in your home and take a written inventory of them just prior to you sitting down and discussing your home contents insurance with your online advisor.

It is worth noting too that your home contents insurance will also cover you for losses whilst on vacation, so in the unfortunate event that your personal items missing when you are on the beach having a good time it’s good to know that you will be reimbursed for those valuables at market value, which is often a fair bit less than you would be happy with. Always check with your provider what their policy is on “market value” for stolen, lost or damaged items and if you are unhappy with their guidelines, simply move on to a more reputable provider.

You may also wish to consider that within the last two years home contents insurance companies have been much less forgiving when faced with a claim for loss or theft. As the economy has hit even the largest of organisations and belts have been tightened, insurance assessors have had to become more vigilant as a result and are less likely to offer what customers would consider a fair compromise for their losses.

Always ask for a written breakdown of exactly what is and what is not covered from any potential insurance provider before you decide to opt for your next home contents insurance.

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