Home Contents Insurance

What is home contents insurance?

It is an insurance policy that gives you protection for the items in your home.

Why do I need any insurance?

If you, or someone you know of has suffered a fire, flood, burglary or similar incident in their home, then you will appreciate just how much damage can be caused.  After the clean up comes the cost of repairing or replacing any possessions that have been lost or damaged.

If however, you had home contents insurance, you would be able to make a claim which will allow you to get your home back to normal again, as quickly as possible.

If you are a Tenant, the Landlord may reinstate any damage to the building or fixtures and fittings such as kitchen units, but may have no responsibility for your belongings, carpets or decoration in the event of any incident at your home.

What type of cover can I have?

Each insurance company will offer different types of policy, or cover.  Essentially, the differences are for the total amount of claim and whether the replacement is on a 'new for old' basis.

The maximum sum insured can vary considerably and most insurers would be able to offer a range of cover options.  You could make your choice based on the value of your belongings, or on what your budget will allow.

The more expensive policies, offer replacement on what is known as a 'new for old' basis.  This means that any claim settled for a repair or replacement is calculated on the current cost of a new item

The alternative to this type of cover, is more basic, depreciation and 'wear and tear' is taken into account when settling any claim.  This type of policy would cost your less.

Will it cover everything in my home?

No.  There are often certain items that are not covered, for example, cycles or contents of the shed may not be covered.  So, it is always a good idea to discuss exactly what is NOT covered at the time you take out any policy.

If there were specific items that you wanted including, you should mention these to the insurance company. In addition, you may have high value items eg jewellery that may be above the policy limit.  Again, you should discuss this at the time, to arrange additional cover.

What will it cost?

Unfortunately, due to the many differences that could exist, it is not possible to include an idea of costs in this leaflet.

However, to assist with spreading the cost, many insurers will offer the facility to pay for the premium on a monthly basis.

It may not cost as much as you think, and even the cost of the most basic policy will be much less that the cost of replacing all the contents of your home!

How do I find an insurer?

If you already know an insurer, perhaps because you already have a life insurance policy, have a chat with them first.  Sometimes, if you already have other business, a company will offer a small discount.

Otherwise the best place to look is in the yellow pages under 'insurance guide agents or companies'.  Shop around before going ahead, just to check how much premiums vary.

Finally, it is worth mentioning the 'General Insurance Standards Council.  They are the watchdog established to set, monitor and enforce standards in all areas of general insurance, including the fair treatment of customers.  You may want to check that any companies you contact are members of this organisation.  Look out for the logo.  If you have any queries on this, you can contact the GISC on 020-7648-7810.  Or, you can obtain advice on their website: www.gisc.co.uk