Many people nowadays choose to insure their home contents against the chance of theft or damage. Contents insurance will cover damage to the possessions inside your home, as opposed to the home itself, which would be referred to as home insurance.
Contents insurance will usually cover damage, which occurs due to fire, lightning, fallen trees, subsidence, theft, vandalism, fast-moving vehicles colliding with your house and so forth.
It will also generally cover the price of accommodation and storage if you are not able to live in your house due to the results of damage (for example flooding or fire), some cases of of accidental breakages of hi-fi equipment, computers, televisions, blu-ray players, furniture, spoilage of food if a freezer should malfunction, any cash which is stolen from your home and the items inside your outbuildings. Standard contents insurance will not usually cover accidental damage to furnishings or goods, but this can usually be added for an additional cost.
There will generally be an upper limit on the amount of cover available on high-end items such as jewellery or hi-fi equipment. If you have possessions which are worth an especially large amount, make sure they are fully covered by the policy you may be considering. You can get more information on buildings and contents insurance information here
Get the best buildings insurance
The insurer you currently use may not be offering the best price out there, so look around at quotes from multiple companies. Try using an online price comparison site, but remember not all products are available on price comparison sites, so do get quotes from them as well. If you have been offered lower quotes elsewhere, this can be a persuasive tool when switching insurer. If your current insurer offers to cut your rates dramatically it may save you the bother of changing company.
Claim-free years count
If you do not need to make any claims for a number of years, this will count towards getting lower insurance rates. A substantial period of time during which you have not contacted your insurer could bring discounts of 25% or more.
Be wary of being under-covered
If you rebuild or significantly add to your house or the grounds it is sensible to inform your insurer with updates of your circumstances. If an unforeseen disaster occurred at an inopportune time, it could be very costly if you have new developments which are not covered by your insurance.
Environmental hazards: Flooding
There has been an influx in flooding situations in recent years. The damage caused can be extreme and many people cannot afford the repairs which are required. While flooding may be included in buildings insurance, if you have been hit with water infiltrating your home once it will cost more to get insurance again. If your house is prone to flooding and your region is a frequently deluged you may not even be able to get insured in the first place.
It is possible to check if you are in a flood area at on the government’s website.
As we have seen, attention to detail and reading the fine print of your policy is essential before committing to a payment plan. Look around for the best deal and do not shy away from asking your current insurer for a better deal if you have been offered better elsewhere.