Unless you have enough money to cover replacing everything in your home, you will need to take out contents insurance. However, getting the wrong cover can be just as detrimental as not taking out a policy at all. Here are four things to consider before purchasing home contents insurance.
How much cover shall I get?
Although there are online calculators to help you work out how much cover you will need, it is more accurate to take an inventory. This involves listing everything you own, along with an estimation of how much it will cost to replace (and receipts or proof of purchase, if you have them). Not only does this make the replacement cost more accurate, it also helps you administratively in the event of a claim.
How much excess can I afford to pay?
You can usually choose how much voluntary excess to pay, on top of any excess your insurance provider stipulates. The higher the excess, the less your monthly premiums will be. If you opt for a high excess, it’s worth working out if it’s cheaper to replace a broken or lost item rather than claiming, as it can often cost more to pay the excess than to repair or replace an item. Also make sure you are able to afford the excess if you should have to make a claim.
Do I need accidental damage cover?
Whether or not to opt for accidental damage cover is personal choice. If you live in a home in which things are likely to be damaged; for example, you have pets or children, it’s definitely a worthwhile consideration. It isn’t usually a huge amount more than a standard policy and does offer extra peace of mind.
What isn’t covered?
Although home contents insurance does cover your valuables, it doesn’t always cover items you may take outside your home, or items over a certain value. If this is the case (check the small print), you may need to name specific items and state their value to ensure they are covered. It is important to check what is and isn’t covered in order to ensure your policy works for your circumstances.
