There are many different types of insurance out there and it’s important to find out which ones are necessary for you. Having insurance gives you peace of mind that when problems pop up in life, you’re financially secure enough to cover them. In this article, we’re going to take a look at contents insurance and why it’s important. 🔍
What is contents insurance?
Let’s say you are moving home, your ‘contents’ are the items that you’d take with you. So, contents insurance is the protection of all these items. If anything were to get damaged, stolen or destroyed, having contents insurance would cover the cost of replacing or fixing these items.
Some examples of contents could be: · Electrical items such as laptops, tablets and TVs 💻 · Ornaments and any antiques 🍶 · Furniture such as sofas, beds, wardrobes 🪑 · Clothes, accessories and jewellery 👜
Contents insurance can sometimes be confused with home insurance. Home insurance can also go by the name of building insurance, as it covers your house’s structure. Essentially, it covers anything that’s fitted to your home, and it usually covers events such as floods, fires, theft, vandalism and other weather damage. It’s common for people to have a combination of home and contents insurance but make sure to check what you are and aren’t covered for with your policy.
Why do I need it?
Whilst contents insurance isn’t compulsory, it’s important to insure your items in case an unfortunate event occurs as discussed earlier. When you’ve worked hard to buy nice stuff, you deserve to feel peace of mind in the knowledge that you will be covered if anything goes wrong. ☂️
How much is it and how does it work?
How much you pay for contents insurance can vary depending on your situation. There are three main types when it comes to contents insurance policies: sum-insured, unlimited sum-insured and bedroom rated.
· Sum-insured means you must calculate the amount of cover you need · Ultimate sum-insured means that all of your contents are covered, and you won’t have to worry about ever being underinsured · Bedroom-rated goes off how many bedrooms there are in your home in order to calculate how much cover you receive
🔑 Key tip! If you’re a tenant in a rented property, your landlord is responsible for home insurance and any contents that came with the property. You are responsible for covering any of your personal possessions. It is also possible to get contents insurance on just one room, depending on your tenancy agreement.
What does contents insurance exclude?
Just like most insurance policies, there are things that this particular insurance won’t cover. General wear and tear is excluded when it comes to contents insurance, as is damage to your electrical items such as a computer virus. While it does cover carpets, contents insurance doesn’t cover laminate and hardwood floors as these fall under home insurance. Normally, any items that are worth more than £1,500 each must be listed individually when you are taking out your contents insurance policy.
Like you should with most things, it’s important to shop around and find the best price and policy for you. It’s always best to read the small print and ask questions. You should also ensure that you keep your policy up to date, especially if you’ve bought any new items that are worth more than £1,500. If you already have contents insurance or any other insurance for that matter, it’s worth comparing prices, so you secure a better deal for yourself. 🤝
Contents insurance is one of the many different types of insurance you can have. At Bequest, we want you to have peace of mind, so we have life insurance cover and we’re looking forward to offering more products in the future! 🤩 Check out our life insurance page and FAQs for more information.