Contents insurance: what do different types cover
We all know it is important to have contents insurance but what does it actually cover? Contents insurance by definition will cover and loss or damage to your possessions while they are in your home; however, they do not cover loss or damage from personal malicious damage.
By possessions insurance companies mean anything that isn’t permanently attached to the structure of your house: for example, fitted units won’t be covered but anything you would take with you when you move is covered, including TVs, beds and wardrobes. Anything that is not covered by contents insurance will come under building insurance which is a different kind of insurance.
The most frequent damage to contents which causes people to claim on their contents insurance include thefts, burst or leaking pipes, fire, floods - in fact, anything outside of your control which causes loss of or damage to your personal belongings is covered by contents insurance.
Whilst insurance companies won’t pay claims where items have been purposefully damaged many do offer the option to add additional cover for accidental damage. The cover this provides varies from company to company so remember to check what the company you go with covers. Another thing to check when buying contents insurance is their replacement cover: does the company offer ‘new for old’ replacement on your possessions, or something else? This will mean no matter the age or condition of the item you will get a new one. Some companies offer ‘replacement value’ which means the age and condition of the item are taken in to account and you could end up receiving less than you would expect for an item.
Some companies provide flexible levels of cover for certain occasions such as Christmas, which means that presents in the home will be covered by your contents insurance if they are damaged or spoilt in any way. Other instances of this flexible cover include wedding presents to allow newly weds to cover their presents before deciding what to do with them.