Basically, home contents insurance is insurance protection
against the replacement cost that you would otherwise have to
pay to replace the contents of your home in the event of then
being lost, damaged or stolen. As is the case with home
buildings insurance, the main factors contributing to grounds
under which you can make a claim against your home contents
insurance include theft/burglary, damage due to floods, burst
water pipes or boilers, etc.
There are, however, two very
important factors that you need to keep in mind when insuring
the contents of your home:
First, in the case of home
contents insurance, it is rarely the case that your mortgage
provider is going to insist that you have this type of insurance
as part of your mortgage agreement;
Second, regardless of
whether you own or rent the property you are currently living
in, you should still be looking to insure the contents of your
home – as these are your personal possessions.
Two
further aspects of home contents insurance also need to be
considered carefully when you are checking out the different
kinds of policies on offer. In some, but not all, cases you can
be insured for your home contents even when the items listed in
your home contents insurance policy are not actually physically
located on the home ‘property’. So, for example,
First,
it is possible to claim when you are transporting items from one
place to another and they are stolen.
Second, home
contents insurance is insurance against the replacement cost of
the item being insured.
It does not, nor is it intended to,
insure you against the nostalgic value of the item damaged/lost.
So, for example, if you insure a picture your deceased
grandmother gave you, which would cost £20 to replace, it makes
little difference that it was your deceased grandmother who gave
it to you and that it cannot, therefore, be replaced.
Although home contents insurance is, in all but a few very rare
circumstances, a completely voluntary scheme of insurance to
subscribe to, if you are in any doubt as to the value of this
insurance scheme, take a quick mental inventory of the contents
on your home and their value and then get a few quotes off the
internet and you’ll soon be seeing the value of having your home
contents properly insured.
About the Author:
Joseph Kenny is the webmaster of the insurance site
http://www.insure121.com/ where you will find information,
news and links to the leading providers of home insurance in the
UK.
