When it comes to insuring your home, it can be tricky to get your head around what’s what. While building insurance concerns the structure of your home, contents cover is different. To help you fully understand the details of contents insurance, keep reading.
What is contents insurance?
Contents insurance is a type of financial cover that’s designed to protect your personal belongings. In the event that any of your possessions are stolen or damaged, having content insurance in place means you won’t be left counting the cost yourself. This form of cover includes all of the items in your home that you would take with you if you were to move. For example, it covers pieces of furniture, such as your bed, dining table and sofa, as well as electrical items, like your TV and laptop. It also includes things such as clothes, shoes, jewellery, DVDs and books.
Do I really need it?
Regardless of whether you own or rent the property you live in, you are not legally obliged to take out contents insurance. However, as specialist insurance company HomeLet points out, despite how careful you think you are, there is a risk that your personal possessions will be stolen or damaged. You might consider your home to be relatively safe and secure, and you probably try your best to avoid disasters and accidents, but you never know what might happen, so taking out contents insurance will put your mind at ease and protect your finances should anything go wrong.
Which policy should I go for?
To ensure that you’re suitably insured, it’s important to take out a policy that’s right for you. For example, if you rent your home, you can purchase specially designed tenants insurance. As part of your tenancy agreement with your landlord, you may be responsible for covering the cost of any damage that’s caused to their furniture or fixtures and fittings. By having a policy in place that includes tenancy liability cover, you won’t be left picking up the cost yourself.
It’s also possible to tailor your policy to suit your specific requirements with a range of extras and add-ons. For instance, you could extend your cover to include high-value items or you could tweak your policy to include cycle cover if you use your bike regularly.
While contents insurance is not compulsory, it’s definitely worth considering, even if it’s just for added peace of mind.