Why should I get contents insurance?
Protecting your valuable possessions from theft, damage or loss can be expensive, so getting contents insurance for your home is a smart investment. Here we cover a whole host of reasons why having a contents insurance policy can give you peace of mind and help reduce your overall financial burden.
While not a legal requirement, getting contents insurance for your home can be a very worthwhile investment when it comes to the protection of your valuable possessions - and it’s good for both renters and homeowners. Let’s take a look at why you should consider purchasing a contents insurance policy.
What is contents insurance?
Contents insurance is a policy which covers you in the event that your possessions are damaged or stolen. Most policies usually cover events such as burglary, fire and flood damage. Some policies also include accidental damage, but in most cases, this is an additional bolt-on that many providers offer. Accidental damage covers things like dropping your phone or laptop, and even any damage to soft furnishings such as wine spills on your sofa or carpet.
Whilst no one likes to pay out for unnecessary policies, let’s face it, replacing your possessions in a “like for like” fashion in the event of damage or theft can be extremely expensive. A solid contents insurance policy can ensure that you don’t have to worry about this, as you’ll have peace of mind that you’ll be covered.
What does it cover?
Most contents insurance policies are quite extensive and cover your “standard” electronic possessions like mobile phones, laptops, TVs and games consoles. A contents insurance policy would also cover your appliances such as washing machines, fridge freezers and ovens.
Your furniture such as sofas, beds and even soft furnishings like curtains and rugs would be covered by most policies, and you should also have cover for high-value items such as artwork, jewellery and watches.
What’s not covered?
Contents insurance policies don’t cover the general wear and tear of items, or if the item in question reaches the end of its typical life span. For example, it’s unlikely you would be covered for an old washing machine that has stopped working due to the age of the appliance.
Any structural aspects of a property would not be covered by a contents insurance policy, either. So things like damage to your roof, walls and windows would only be covered by a separate buildings insurance policy.
When you take out contents insurance cover, you’ll agree to be covered for a specific amount that reflects the value of your goods. In essence, this means that you’ll only receive cover for the value agreed. For example, if you have a watch that’s stolen and is worth £5,000, but you have only advised a value of £2,500, this is the maximum you’ll be able to receive in the event of a claim.
Reasons to get contents insurance
So what are the reasons you’d get content insurance? Let’s find out…
Peace of mind
A contents insurance policy will give you peace of mind, knowing that in the unfortunate event your home is broken into, or is damaged by flood or fire, you will have financial cover for your possessions.
Competitive policy prices
The typical cost of a contents insurance policy is around £55-£70 per annum, which is a small amount to pay considering how much it would cost to replace your possessions if they were damaged or stolen.
Accidental damage option
Some policies offer accidental damage, or this option can usually be bolted on when buying your contents insurance policy. It can often work out cheaper than buying a standalone accidental damage policy.
High cost of possessions
Electrical items in particular can be the most expensive things someone can own (aside from watches and jewellery). With the average price of a mid-range smartphone currently standing between £300-£500, along with the cost of laptops, TVs and other electrical appliances in an average household, it could cost several thousand pounds to replace these goods. It would most likely work out as more cost-effective to claim against a policy.
Variable excess options
You can typically choose the level of excess you’d like to pay in the event of a claim, whereby the higher excess you go for results in a lower premium. This can help reduce the cost of your overall policy.
Can be combined with buildings insurance
If you’re a homeowner, you can combine a contents insurance policy with a buildings insurance policy, which often results in a discount - meaning the policy works out cheaper than if it were purchased as a standalone policy.
Summary
There’s so much uncertainty in today’s world, from natural disasters to crime, especially with the cost of living crisis. A contents insurance policy is a great way to get peace of mind over incidents such as theft, fire or flood. It can be extremely costly to replace your possessions, so having a good policy which has you covered can be highly beneficial from a financial viewpoint.
There are a couple of benefits to getting contents insurance. Competitive policy pricing means it might not cost as much as you might initially think. Accidental damage can be bolted on, or even included as standard depending on the policy, which can include cover for items on your person when you’re away from your home. Finally, you can typically purchase a combined buildings and contents insurance policy, benefitting from a discount and giving you full protection and security. Nice.