House Contents Insurance - Unbiased Review

Of course you have homeowner's insurance to protect you in case your home is hit by fire or natural disasters. However, your policy may not give you adequate protection if it does not cover the contents of your house. If this is the case, then you might want to take out a separate house contents insurance policy to ensure that you will be reimbursed in case something happens to your possessions. Contents insurance is usually issued on a 'named peril' basis, meaning that you will have to specify the specific causes of loss that you would like to take out protection against, such as lighting/fire, vandalism, theft, riot, explosion and sudden and accidental discharge from artificially-generated electricity.

House Contents Insurance - What You Need to Know

There are two main types of house contents insurance policies: 'new for old' and indemnity. New for old policies will replace lost items with new ones provided that you have maintained your possessions in good condition, although some items such as clothing may incur deductions on reimbursement depending on age and natural wear and tear over time. With indemnity policies, the amount of reimbursement will reflect the amount of depreciation in value the item has sustained. If you have relatives living with you, their possessions will also be covered by your policy. However, for certain items, such as jewelry, watches and other types of valuables, there may be coverage limits that would limit the amount of reimbursement.

You can also add additional types of coverage to your house contents insurance, including damage or loss for items you frequently use outside the house such as cameras or bicycles, replacements for locks in case your keys are stolen and student cover for personal belongings such as the contents of backpacks.

House Contents Insurance Tips

If you want to save money on house contents insurance, you can opt for indemnity policies, which offer lower premiums. However, there are also a number of steps you can take in order to get a lower contents insurance quote. For example, you can install an alarm system on your house to deter burglars and take other security measures. Many insurers may also offer you a discount if you take both your property and contents insurance from them, as well as if you have a claims-free history on your other insurance policies. Some insurers may offer you additional discounts if you buy a policy online, since it saves them money on having to send an agent out to deal with you. Buying online also allows you to compare quotes conveniently and easily.

Last Updated: September 15, 2010.