Contents Insurance Protects Your Valued Possessions
Your mortgage lender may require you to have building insurance to cover the home and property and protect their interests in the event of a disastrous event. However, your building insurance policy may not cover all the valuable possessions you worked so hard to attain. To protect your other assets, you need a contents insurance policy so you are not financially devastated in the event of burglary, flood or fire.
Why You Need Contents Insurance
Your mortgage lender will insist on buildings insurance to protect your home and property because it is in their best financial interest. Protect your own personal financial interests by getting contents insurance because your valuable are certainly more costly to replace than you think in the event of an unexpected occurrence. A contents insurance policy covers anything that is not part of the fabric of the house.
What Contents Insurance Covers
Contents insurance covers items that are not part of the fabric of your home, but what does that specifically include? Items such as your television, computer, DVD player, stereo, clothes, furniture, bedding, books and food are usually covered by a contents cover policy as well as your freezer and other appliances.
What Eventualities Contents Insurance Covers
Many eventualities are usually covered by contents insurance including theft, fire damage, vandalism against your home, damage caused by flooding and earthquake damage. Some contents insurance policies may cover replacement locks in your home if your keys are stolen or lost but you should verify the terms of your policy to make sure this is covered.
What Contents Insurance Does Not Cover
In certain instances, you need to get extended contents cover for valuables such as fine jewelry, antiques, ornament and artwork. Other items that may or may not be covered and should be checked out include:
• Laptop computers used at school or work;
• Items in a shed such as a lawn mower;
• Contents of a wallet or handbag;
• Baggage and credit cards when traveling abroad – a travel
insurance policy can be purchased when going away; and
• A pedal cycle kept outside the house.
Carefully verifying the terms of your content insurance policies will ensure you get the level of coverage you need.
What Eventualities Contents Insurance Does Not Cover
Exceptional circumstances that are not covered by contents insurance include the willful damage of your property, loss of an items outside a certain distances from your home and damage to glass or damage to your property as a result of do-it-yourself projects. Checking your policy will tell you which of these eventualities are covered and which may not be.
How To Determine The Level of Contents Insurance You Need
To determine the level of contents insurance you need, go from room to room and make an inventory of all your valuables. At the end, assign a cost to each valuable for its replacement and tally all the items for the overall amount of contents coverage necessary. You are likely to discover you need more contents insurance than you may have originally thought.
Accidental Damage and All Risks
You can also purchase buildings and contents insurance with Accidental Damage and All Risks to cover items regularly taken out of the home, regardless of how or where they get damaged.
Contents insurance protects the valuable assets you worked so hard to earn so you don't experience serious financial hardship in the face of a crisis.