Home insurance provides protection against accident, loss, damage or burglary. By taking out contents insurance you protect yourself financially if anything were to happen to your belongings. What would you do if you had a fire or flood and lost everything in your home? Would you be able to replace lost items? Most people wouldn’t. So when accidents do happen, is everything covered in your policy?
Depending on the insurance provider, some items and some situations might not be covered. It is therefore very important to work out what you need to have included in your insurance. Make sure you read through the terms and conditions of your policy and ask questions if you are not sure.
What’s Not Included- Contents Insurance For Tenants
Over 75% of Provident’s customers rent their property1 but did you know that many companies will not insure you if the property is furnished? What’s more, many insurance policies will leave out any furniture provided by the landlord. So, if you are burgled or have a fire you will need to foot the bill for your landlord’s items to be replaced or repaired as well as your own.
When looking around for insurance, comparison sites can help you find good deals and give you the option to choose policies which cover furnished properties. Always check what exactly will be covered directly with the insurer though so that you don’t get caught out.
Some comparison sites worth using include:
Whether your kids are toddlers or teenagers, accidents will happen. If you don’t want to be left with a hefty bill after a TV gets knocked over or a laptop breaks, it is a good idea to add accidental damage cover to your contents insurance policy!
In some cases insurers include accidental damage to items like as TVs and computers as standard so additional cover isn’t always necessary. However, if it isn’t included, additional cover can add up to 20% to the price so you need it shop around for the best deals and always read the small print.
Accidental Damage By Pets
Actors often say you shouldn’t work with children or animals and when it comes to pets, insurers seem to agree. In many cases, damage caused by pets is not covered by insurance policies at all. Some companies will insure damage caused by pets but only if you take out additional cover.
If, like over half of Provident’s customers2, you have a pet it is important that you read the small print to check whether you are covered. After all, you don’t want to end up in the dog house for getting the wrong cover!
The points above are just a few you should consider when taking out contents insurance. However, before taking out cover, make sure you read all the information provided (no matter how dull) and ask questions if you are not sure.
When buying insurance you also need to decide if you want to include additional options such as legal cover. Legal costs, even for small disputes, can often run into thousands of pounds. However, many insurance companies provide legal protection with their policies which can include a range of civil disputes such as unfair dismissal, personal injury or disputes over hiring or buying goods.
Legal cover does vary with each supplier and policy so always make sure you know what is included.
What Type Of Contents Insurance Do You Need?
There are three different types of contents insurance available depending on what you need.
Bedroom Rated Contents Insurance
‘Bedroom rated’ works out the amount of cover you have based on the number of bedrooms you have. Whilst this means you don’t need to do any sums, you could be left under insured if you have a lot of high value possessions, or paying too much if you have few.
Sum Insured Contents Insurance
‘Sum insured’ policies require you to calculate the amount of cover you need. This means going through everything in your house from toasters to toys, clothes to couches and adding up how much money you would need to replace everything. This can be time consuming but it will make sure you get the appropriate cover.
Unlimited Sum Insured Contents Insurance
‘Unlimited sum insured’ policies will cover all your contents without any limits, meaning you will never be under insured. Whilst this sounds great it can sometimes be much more expensive.
When looking at contents insurance, look at different options to get the best price for you.
To get more information on the right insurance policy, click here
Do you have any more tips on what to look out for when looking at content insurance policies? Let us know your thoughts below!
1 Customer Tracker December 2014
2 EXDC Key Stats: Nov 2013