Insuring the contents of your home optional, but with the threat of burglaries, fire and the recent floods Britain has been experiencing, finding a good contents insurance policy to protect your valuables is a good investment- and there are plenty of cheap policies out there if you just want something basic to cover the necessities.
Contents insurance insures anything that is not a fixed part of your home- basically, anything that isn’t bolted down like electrical, furniture, clothing and some companies will even insure the food in your cupboards and freezer! This type of insurance is good for any home owner, or rental tenant, but if you’re a land lord there is limited cover if your rental property is unfurnished or partly furnished.
The cheapest sort of cover is indemnity insurance. This covers the cost of the item in the condition it is at the time it is damaged or stolen- so, a 5 year old item will be replaced with an item of similar value and condition, or you’ll be reimbursed the equivalent amount. Another option is the ‘new for old’ cover which would replace the lost or damaged item with a brand new one.
Your home contents insurance can be extended to cover items such as bikes and prams that are taken out of the home regularly, and can even cover things like ipods, mobiles and clothes. Sports equipment can be insured under these policies, but only when not in use- once you start using them you need separate insurance or to use them at your own risk. Nowadays you can even ensure your garden as an extra room to protect high value items or plants there!
The contents insurance covers events such as theft, vandalism, storms and flood damage and fire damage, just like buildings insurance.