Contents insurance includes everything in the home belonging to the policyholder, their family and other residents of the home. It also includes other property for which the policyholder is responsible, for example a rented television.
Generally everything which is not permanently fixed within the building is covered. Furniture, furnishings, carpets (including fitted carpets), curtains, electrical goods, household goods and clothes are all examples of 'contents'.
What risks are covered?
Insurance policies cover the contents against certain risks which may vary from one insurer to another. In general terms the risks covered will include:
Contents insurance policies will have exclusions which are risks that the insurer is not prepared to accept. In general they will include:
Once again, in every case the insurer will provide an exact definition in the policy wording.
It's common with contents insurance to offer additional cover as an option to the customer, allowing you to insure certain property both in and out of the home.
Items such as jewellery, furs, cameras and musical instruments can be covered against any type of accidental loss or damage inside or outside the home. Without this extension to your insurance policy you would not be able to make a claim if you lost or had an item stolen whilst outside your home.
You have to make sure that you cover all the contents in your house. The best way to start is make a checklist room by room. Go through each room and write down all of the objects, furniture and valuables in each room.
Next consider the value of each item and write them down on the list. Total these values up per room to give a value of the contents to be insured in each room. Add all the rooms together for the total value of contents to be insured but don't forget garages, sheds and external buildings.
Make sure you are accurate with your valuations. Although lower contents values will decrease your premium, in the event of a claim you would be underinsured and would not be able to replace some of your items.