Home Contents Insurance Basics Explained
This policy is an insurance against loss of ones
items from home. Usually it covers accidents that might
also happen like breakages, spillages or other damage.
The cost of the insurance does depend on that cost
which would be incurred to replace the items, so
If the cost is high, the promotions may well be higher.
The policy is usually a long document which details
what is and what is not covered. The infamous "Acts
of God "exlusion and" war "and" earthquakes "are
typically not covered. Flooding is a sensitive one
in the UK and you need to check your policy carefully
if you are seeking cover in a place liable to flooding.
The policy typically runs for a year despite shorter
periods can be available. Who takes out the policy
will pay the insurance company some money – a 'premium'
which will bring the contract into force.
Sometimes there are ways of reducing the cost of the
policy, for example by installing sprinklers or if
you live on the same street as a fire station! Sometimes
costs will be extra eg in flood-risk or older properties.
Single items of significant value usually need to be insured
separately which can slowly increase the premiums
eg if you own a diamond ring worth tens of thousands,
this probably needs to be itemised separately.
Companies often offer incentives to switch your
insurance provider, so it is worth taking a few moments
to shop around to see if you can get some goodies
and make a saving by changing insurance provider.
Note: none of the above should be construed as a
recommendation for any company nor as financial advice