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insurance: Contents Insurance

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Contents Insurance

Although many of us are tempted to think that items in our homes are safe from anything adverse, this is not the case. Indeed, there are many threats, such as crime and disasters, which can damage our personal possessions. Contents insurance is a type of insurance that protects the possessions in your house should anything untoward damage them, such as a fire or a flood, or they become stolen.

Types of Contents Insurance

Most contents insurance has a new for old policy which means that if your possessions are lost or damaged, you will receive the new price of the items. However, this consequently incurs a higher premium. Indemnity contents insurance policies have a cheaper premium, however, if you make a claim you will only get the current market value of your item, which, due to the natural wear and tear of item, will be less than the price you originally paid for the item.

There are three main ways by which contents insurance is calculated: unlimited sum insured, sum insured and bedroom rated. Unlimited sum will insure your contents up to an unlimited amount, thus eliminating the possibility of being underinsured. However, unlimited sum contents insurance does tend to be quite experience. Sum insured allows you to determine exactly how much you would like to be covered for, which means that you can avoid paying for more cover than you actually need. However, calculating the amount of cover you need can be rather time consuming and there is always the chance of miscalculating the value of your possessions. Bedroom rated insurance uses the number of bedrooms in your house to calculate how much cover you are entitled to.

Top UK Providers of Contents Insurance

Aviva is largest insurance broker in the UK and offers both no claims and online discounts, meaning that their contents insurance policies for as little as £64 per month.

MoreTh>n is another popular contents insurance broker in the UK. They offer cover for up to £75,000 and all of their policies include home emergency assistance.

LV= are also a popular option when it comes to contents insurance brokers. LV= offer contents insurance policies of up to £150,000 and customers who purchase their insurance policy online are entitled to a discount.

Comparison Table of Top UK Contents Insurance Providers

  Excess Maximum Contents Cover Online Discount
Direct Line £200 £50,000 yes
MoreTh>n £150 £75,000 no
M&S Bank £100 Unlimited yes
Tesco Bank £150 £89,000 yes

Choosing the best contents insurance

When you are reading over a contents insurance policy, be sure to pay attention to the terms and conditions of your policy, in particular, beware of what the insurance policy includes and excludes. For example, most policies put a limit on the amount of cover for exceptionally expensive items. In addition, some insurance brokers will not pay out if the house has been left unattended for a specified number of days.

Think about optional extras. Although some optional extras may not be relevant to you, some optional extras can prove very useful such as accidental damage or personal possessions. The former will cover most accidental damage to goods and furniture and the latter will protect your personal items when you take them out of the house.

Although many of us in an attempt to secure a cheaper insurance premium are tempted to under-estimate the value of our goods, this is always to be avoided because if you do have to make a claim, you may not receive enough money to cover your losses.

Take advantage of insurance comparison websites. These helpful sites can help you compare contents insurance quotations in order to help you find the cheapest policy that suits your requirements. In addition, some price comparison websites highlight any discounts or offers that you may be entitled to.