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Contents Insurance
When you are looking for home contents insurance there are a few things you should be aware of. Listed below are some of the more important ones.Level of Home Contents Insurance Cover
The correct level of contents insurance is essential. Surveys suggest that 36% of contents insurance policy holders are under-insured. This could be due to the increasing amount of electrical goods on the market, or the fact that we all buy clothes and other items throughout the year.
Being under-insured on your contents insurance is a big concern. Most insurers now recommend that your contents cover is at least £20,000. If you were under-insured by 50% for example and you made a claim on your contents insurance, your insurer is entitled to pay out 50% less than what you are claiming for.
To find out how much contents insurance you need, why not use our online home contents calculator.
Accidental Damage
Some policies will cover this, others won't. To know if you need this option on your contents insurance depends on how likely you are to accidentally damage your contents by, for example, spilling coffee on your sofa.
It is worth checking your policy wording to see if you are covered.
New For Old
With this type of contents insurance, if you have to make a claim, the insurer will replace the item or offer you a cash alternative. If you don't have new for old contents insurance, then your insurance provider is likely to give you the replacement value minus wear and tear.
This may not seem vitally important, but consider if you have to make a claim on a large number of items, you would have to make up the extra in order to replace the possessions you have lost.
Single Item Limits
The more valuable items you have the more you should concentrate on this section of your contents insurance, as providers can vary hugely on their treatments of single item limits. Most items are covered whilst in your home, but you should check the maximum limit on the value of any single item, or whether there are 'category' limits for certain items e.g. jewellery.
It is more usual that insurers will limit the cover of the items taken out of your home. Normally they will cover personal possessions up to a specified limit and these limits can vary too. Check your policy wording to be sure and remember to contact your insurer if you buy something new which is over the limit.
Contents Insurance Continued...