Home Contents Insurance
Wherever you live, whether it is your own home, a rented property, sharing with others or a University Hall of Residence, it is your responsibility to insure your personal property. This includes furniture and clothing, valuables such as jewellery, cash and documents, electrical items and your mobile phone. Of course, personal insurance is not compulsory, but despite government statistics showing that crimes such as burglary and theft are becoming significantly less common, your property is still at risk from thieves. Of course, contents insurance covers your possessions against things other than crime including loss, accidental damage and in some cases personal liability against third party claims against you. Most insurance will cover loss or damage due to many causes including:
- Fire
- Storm and flood damage
- Subsidence or earthquake
- Water leaks
- Damage caused by a vehicle colliding with your property
Home contents insurance comes with a wide range of options. New for old policies are generally the most expensive. As the name suggests, they will cover the cost of replacing an item that is lost, stolen or destroyed with an equivalent article. These policies do not normally cover items such as clothing or linens on a replacement basis, although different insurance companies offer differing benefits with their policies. Another type of home contents policy is the Indemnity. These are a cheaper option, because unlike new for old, deductions are made for depreciation in the value of the items insured due to normal wear and ageing.
It is important to insure your property for its full replacement value. This is known as the sum insured. Under insuring is a bad mistake, because if you do have to make a claim, the insurance company will only pay the agreed sum insured and you have to pay any difference. Many insurance companies offer an 'on line' tool that you can use to calculate the value of your possessions, but a general idea can be gained by going to every room at your property – including garages and outbuildings – and make a list of the replacement cost of everything in the home.
All contents insurance policies can for a slight increase in the premium be extended to provide cover for certain items including valuables, cash, clothing and sporting equipment when it is outside of the home environment.
If you own any especially valuable property such as a work of art you must obtain a professional valuation and inform your insurance company, who will insure it for its full value as a specified item. It is also important to inform your insurer if you buy anything expensive. Any increase in the value of your possessions needs a corresponding increase in the sum assured.
All policies will contain certain exclusions in cover. You must ensure that these are explained clearly to you before you commit, but generally these relate to the furnished letting of the property or periods of unoccupancy of more than 30 consecutive days. You will be expected to follow an agreed level of security to protect your property. Substantial key operated window locks should be fitted to all ground floor and other accessible windows and external doors require a five lever mortise lock or deadlock. You will often get a substantial discount on your premium if you have an alarm system or cctv fitted and belong to a Neighbourhood Watch Scheme.
Do shop around for your insurance to get the best deal and remember - read the small print.