Why You Need Contents Cover and Why The Lowest Price Can Cost You More.
We all love surrounding ourselves with nice things in our homes such as furniture, soft furnishings and the latest tech. But why do we insist on then looking after these things with the cheapest insurance possible?
With a spike in accidental damage claims due to us spending more time at home because of lockdown, insurance premiums are at their highest for over seven years*. So, we decided to highlight why the cheapest cover isn’t always the best option in the long run.
Why the lowest priced policy isn’t always the best.
Many insurance comparison sites lure you in by offering low priced policies, but many of those prices won’t cover you for all the things we have just mentioned. Every policy will always have an excess (a payment that your insurance company will ask you to pay towards any claim that you make), and if you have a high excess of say £500, you will typically pay less each month for cover – but that means should something go wrong, you are responsible for paying the first £500 of the claim, while the insurance company will pay the rest.
Understanding what is meant by contents cover.
Here’s what’s usually covered as standard by a home contents cover policy:
- Furniture: Such as beds, sofas, wardrobes, dining tables and chairs.
- Kitchenware: Including cutlery, pans, plates, microwaves and kettles.
- Entertainment: Like video games, toys and BluRays.
- Furnishings: Such as cushions, carpets, throws, curtains and bedding.
- Electricals: Like TVs, watches, laptops and consoles.
- Clothes: Including jewellery, ornaments, picture frames and trinkets.
Why you need home contents insurance.
Basically, if any of the above were lost, stolen or damaged, that’s when you could look to use your contents insurance policy. You can typically get cheaper cover if you combine contents with buildings insurance, but it is also worth considering stand-alone contents cover policies.
Making sure you don’t under-insure.
Own an expensive handbag that was bought for you as a gift for your 21st birthday? Spent a huge amount on home tech to watch your favourite movies? If so, you need to make sure you pay close attention to under-insuring as this could have an effect on everything that is insured.
Ask yourself this, if your prized possession was lost or stolen, would you be happy with just being given a fraction of the money back for it? If the answer is ‘no’, then make sure you cover the total value.
New for old cover.
Some policies deduct things like wear and tear away from the cost when settling a claim. New for old cover means the policy will replace items like-for-like. New for old cover usually can’t be taken out on things like clothes, but if you have an expensive laptop or TV then it’s definitely something to consider.
Accidental damage cover.
Accidents happen, no matter how careful you are, you can never plan for the unforeseen. Accidental damage cover is important as it protects you against spillages or dropping something. Most policies come with accidental damage cover as standard for things that are usually non-movable, such as TVs or mirrors… so if you have a portable games console or tablet you might want to look closely at boosting this cover.
Personal possessions cover.
Whether you’re commuting to work or going on a day out, if you’re taking any of your possessions with you, including money, then you need to check you are covered. It’s common for people to leave bags on trains or put down an item and forget about it, it just happens, so make sure you are covered for such mishaps by ensuring your contents cover extends to things outside your home.
When it comes to insuring your belongings, it’s best to have an honest audit of the things you own and make sure you are covered. £10 more each month for adequate cover could save a lot of heartache, and money, if the worst should happen.
To find out how much we could cover your possessions for, speak to one of our home contents insurance experts today on 0800 064 8424 or click here to get a quote for your home contents insurance.
*https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/ employmentandemployeetypes/bulletins/coronavirusandhomeworkingintheuk/ april2020