Contents: Protecting Your Personal Property One Item at a Time
Protecting your home is always very important and many articles tend to focus upon the types of building insurance policies in existence. However, what good is a home if the contents within are not similarly addressed? This is covered through what is known as contents insurance. In the simplest of forms, these policies are intended to financially remunerate you in the event that items are lost, damaged or stolen. Contents insurance can be included within a comprehensive policy or it can be purchased as a stand-alone plan. What are the different types of contents insurance, how do you know which one to choose and what are some pitfalls to avoid?
The Types of Contents Insurance
In most cases, there are three types of contents insurance packages. These are known as:
- Bedroom-related plans
- Sum-insured policies
- Unlimited sum-insured options
In regards to bedroom-related plans, the insurer will work out the levels of coverage based upon the number of bedrooms within your home. The best aspect of this is that as opposed to some other options, you will not have to physically calculate how much insurance is required. The majority of providers will offer between £40,000 and £ 50,000 pounds. This is normally enough for most needs although you could opt for higher if necessary.
Sum-insured policies revolve around the exact value of your contents (hence the name). This is great for those who possess many valuable items such as antique furniture, jewellery collections or classic cars. However, the issue here is that you will be required to determine the exact level of financial coverage. This can normally be achieved with the help of a contents insurance calculator. There are number to be found online.
The final (and most comprehensive) policy is known as an unlimited sum-insured plan. There is no fiscal limitations on the amount of coverage that you will enjoy. This can be thought of as a “lifetime health insurance plan” for your valuables. The downside here is that this option could prove to be more expensive. Still, the premiums could be offset by the level of protection that you are afforded.
What to Look Out for in Contents Insurance Plans
ALWAYS read the fine print. Some providers will add in terms and conditions which may restrict the amount of claims that can be filed or the maximum payouts possible. Another key point to address will be the excess payments that need to be made in the event that you file a claim. Keep in mind that some forms of contents insurance will not cover for events of accidental damage such as may occur when renovating your home. Depending upon where you live in the United Kingdom, rates can likewise vary.
These are some of the basic concepts behind the majority of contents insurance plans. If you are concerned about protecting your valuable items, these policies are excellent alternatives when compared to building insurance alone. Be sure to examine a few different providers using the suggestions listed above in order to make the most informed choices.