Why is contents insurance important

If something happens to destroy or damage your possessions, it can cost a lot of money to replace them items, some of which may be essential. This page tells you what you can expect home contents insurance to cover, how to choose a policy and what problems you might have with making an insurance claim. If you download music and films onto your computer, mobile phone, iPod or mp3 player, many home contents policies offer download insurance as an add-on.

This insurance protects you against the cost of replacing your downloads if they're damaged, lost or stolen. However, you won't be covered if the loss is caused by a computer virus or hardware failure so make sure you've got up-to-date anti-virus protection. Home contents insurance covers you against loss, theft or damage to your personal and home possessions.

It can also cover you if you take items out of the home, on holiday, for example. The insurance covers your own possessions and those of close family members living with you. It may not cover the possessions of anyone staying with you temporarily. You don't have to take out home contents insurance.

However, it's a good idea to do so because if any of your contents are lost, stolen or damaged you will have to pay to replace them.

Your policy should cover damage caused by fire, flooding, storms and theft. You may have to pay extra to cover accidental loss or damage to your possessions. This may be worth considering is you have children or pets. However, check what's included. You will also have to pay extra to cover possessions that you take out of the home, for example, cameras or jewellery, or to cover a particularly valuable item. Your policy may not cover the contents of a freezer or a mobile phone and there may be an upper limit for a single item.

Most policies carry an excess. This means that you won't be covered for the first few pounds of a claim. Most policies offer new for old cover. This means you get the full replacement cost of items that are lost, stolen or damaged. However, some policies will only offer you the amount that your items are currently worth if you need to make a claim. Documenting the stuff you own, from electronics to shoes, can help give you a clearer picture of what you own and how much it's worth.

That may help you decide how much personal property coverage you need, and may also come in handy if you need to file an insurance claim. Whether you choose replacement cost coverage or actual cash value coverage, you will have a coverage limit and a deductible. A limit is the maximum amount your policy will pay toward a covered claim. A deductible is the amount you pay out of pocket before your insurer will help pay toward a covered claim.

However, coverage limitations may apply for certain valuable items. Standard contents insurance typically limits coverage for certain types of valuable belongings like jewelry and furs, says the III. For example, say your diamond ring is stolen. This is where scheduled personal property coverage may help. Scheduled personal property — often referred to as rider , floater or endorsement — is an optional coverage you can purchase to provide additional protection for certain valuables such as art, antiques, furs, jewelry or musical instruments.

To schedule an item, you'll typically need to have the item professionally appraised, according to the III. Other benefits to scheduling items may include coverage for a greater number of risks and no deductible payment if you need to file a claim.

Contents insurance typically covers your personal belongings while they're in your home or in transit to a new home, according to the III. However, this coverage usually doesn't pay for damage to your belongings when it was caused by movers — whether when they were packing the items or physically moving them. It's a good idea to talk to your insurance agent when you're buying a new home to understand how your belongings are covered during a move.

It's also important to remember that you will need a new homeowners insurance policy when you purchase a new home. This is because a new home has different risks and needs that may require different coverages.

If you move any belongings into a storage unit , contents insurance may provide protection for the items against certain perils, such as fire or theft.

However, keep in mind that coverage limits may be lower for items that are off premise. Be sure to check with your policy or consult with your agent to understand how much coverage you have for these items. A local agent can help you review your existing insurance coverage and answer any questions you may have about protecting your belongings. With a better understanding of how insurance helps protect the contents of your house or apartment, you can be prepared to select the coverages that are right for your situation.

What Is Scheduled Personal Property? What Is Personal Property Coverage? Retrieve a saved quote. Home emergency cover is included in some insurance policies and can often be added on. Exclusions and terms and conditions apply. Why is home insurance important? Our home is where we store things that are important to us.

Financial protection. Getting a mortgage. Alternative accommodation. Cover against accidents. New for old. Home emergencies.