It is important that you correctly insure the sum of your content, since it is the maximum that your insurer will pay if you claim. your contents should be insured for the cost of replacing them as new, not for their current value. It is important to periodically reassess the sum insured for your contents, especially after buying expensive items or after a birthday or Christmas. Contents policies will often have a limit, so make sure it’s enough to cover the value of all your belongings. Learn more about your home contents insurance valuation here.
Content policies often include a single item limit, like £1,500 for example. contents valued at less than this limit will automatically be covered, although if you have more expensive items such as jewelry, art or electronics that are worth more than this single item limit, you may need to pay an additional premium to cover them.
Reading: What does contents insurance cover
Most contents insurance policies cover the cost of replacing or repairing your belongings that are damaged or destroyed as a result of an insured event such as:
- broken pipes and water damage, including frozen pipes
- general wear
- mechanical or electrical breakdown, such as a refrigerator breaking down because it has reached the end of its useful life
- restricted coverage when your home is vacant for a long period (specified in the policy) or is rented out to renters
- any amount above the limits specified in the policy
- accidental damage to its contents, for example, spilling paint on the sofa or dropping the TV and breaking it
- Away From Home Coverage: Sometimes known as “all risks,” it can cover loss or damage to your belongings while you’re away from home, up to your asset limit. You may need to list specific items separately, such as jewelry, laptops, and bicycles, that are more likely to be damaged or stolen.
- legal expenses coverage: generally gives you access to legal advice and covers the legal costs of claiming compensation after an accident that was not your fault, as well as the cost of taking or defending other specific legal actions, such as employment or disputes between neighbors
- Home Emergency Assistance: This covers the cost of calling a dealer to take care of an emergency, such as a broken boiler. it will cover repairs and labor and may include overnight lodging if he is unable to stay at home as a result.
- value of its content, taking into account higher-risk items such as jewelry
- where you live, as some areas will have higher crime rates or be more prone to flooding, for example
- your past claim history
- security measures. some insurers have minimum security requirements or offer premium discounts for certain security measures
However, most contents policies will not cover contents damaged or destroyed due to:
Most insurers also offer the following optional extensions:
How do insurers decide the cost of contents insurance?
Insurers take into account a variety of factors when calculating a contents insurance premium, such as:
See abi’s tips on lowering the cost of your home insurance premium for more information on how to get the best value from your insurance.