What is contents home insurance?
Contents home insurance one part of an overall home insurance package, and provides financial protection for the contents of a policy holder’s home.
Home insurance provides protection for the home against damage or loss incurred as a result of fire, theft, water damage, storm damage, and flooding. Home insurance policies are generally made up of buildings insurance, and contents home insurance policies, although not everyone needs a buildings insurance aspect of their cover, as those who rent or own through leasehold are not necessarily responsible for the actual structure of their home.
Home insurance can also include added extras including flood risk cover, which will insure the home in a special way if it is in an area which is prone to flooding, as well as boiler cover, which will pay for any replacement or repairs needed on the boiler.
A home insurance policy can also include multiple birth insurance, which will provide a financial boost to any family who have multiple births, and appliances warranties, which will extend the warranties of all appliances in the home, a particularly useful add on given the cost of repairing or replacing a washing machine or dishwasher.
Buildings cover looks after the actual structure of the home, including any built in items like a built in wardrobes, kitchen units and worktops and bathroom suites. It also covers any external fences, walls, gates doors and outbuildings including a garage and or shed.
How does contents home insurance work?
Your contents home insurance is the most common part of a home insurance policy and provides protection for all contents of your home. This includes your carpets, curtains, furniture, appliances, electrical items, shoes, clothes and everything you find in your home, garage and shed.
When you take out contents home insurance you have to select a level of cover that will suit your own home. People tend to make their biggest mistakes when estimating this level of cover, as they often underestimate the value of everything they own.
One of the biggest contents home insurance underestimations comes from the wardrobe and shoes, with people not adding up the cost as new of all their clothes, and failing to realise the collective value over many years.
The kitchen is another area of contents home insurance people do not add up properly, often forgetting the value of items in the cupboards, fridge and freezer, as well as their actual cooker, fridge, freezer, washing machine, dishwasher and tumble dryer.