Contents Insurance 101

Imagine living in the house of your dreams- with the exhilarating smell of fresh paint in every corner of the house, sparkling new furniture in the living room, one breath-taking kitchen fixed with fine details, neatly decorated patio with classy furniture and a lush green lawn at the front. You would instinctively want to protect every aspect of this image at any cost, wouldn’t you? For aesthetic home owners, any house that they live in is their dream house, thanks to the timely and financial costs. The home insurance industry makes sure that your home is protected against unexpected events such as earthquakes, fire, attempted burglaries, etc. What some of us overlook in this insurance package is the need for protecting pricy belongings, too. This piece will give you an insight into the world of contents insurance and what it can really help you protect.

What Will It Cover

A typical contents insurance policy will legally entitle you to claim your home interior repairs in case of damage and/or theft. To incorporate your precious personal belongings in the insurance cover, you are usually liable to pay extra. While some policies have an in-built possessions package, the extra cost in the others ranges from £20 – £100 in the UK. So if you have just bought an expensive furniture for your kitchen and new eco household appliances, you might want to include them in your list of possessions which need to be insured!

Tips And Tricks Of The Trade

Before you call up your insurance agent for an appropriate contents insurance policy, you might want to consider these aspects for valuing your possessions.

Make A List Of Things That Need To Be Assessed For Valuation

It is always wise to note down the list of things that matter, no matter how big or small they might be. Categorize them according to their purchase dates, price tags and personal importance. This will help the insurer determine the exact cover that suits your purpose.

Valuables And “Personal” Important  Items

There are valuables, and then there are possessions like antiques that might be of extreme importance to you. Before choosing an insurance company, carefully read up on each company’s policy about the definition of “valuable”. Some financial institutions attach a £1000 limit in their insurance policy according to which, valuables worth more than a £1000 are not insured. Looking at your own list, make sure you research the Internet for insurers whose polices come in lieu with the limit that suits your possessions.

Some of your belongings like antiques, vintage clothes, old music records etc. will require third party evaluators, who can correctly estimate their true value. If you are of the sort, make sure you hire two or more evaluators to determine the cost of your vintage collectors’ items, so that the insurance policy is drawn up accordingly.

When Should You Make A Claim

Once you’ve carefully bought the right insurance policy, it is also equally important to know the appropriate time for your claim. If you spill juice on the carpet, the insurer would attribute it to “wear and tear” rather than accidental damage! You have to be very wise before making a claim, keeping in mind the probability of a premium hike once the insurer agrees to a replacement. As a rule of thumb, make sure that you take care of your personal belongings- cover your sofas with a cloth while painting, store your summer clothes in plastic bags in a wardrobe, and clean your kitchen equipment once you are done using it.

If you have taken the necessary precautions, and even then an accident occurs; it’s probably the right time to call your insurance agent!

Author Bio:

Anthony Rocco is the owner at TheKitchenWorks.com : a company that sells household appliances and various designs for kitchen, bathroom and other rooms in the house. He always advises his customer to opt for contents insurance, in order to protect their belongings from unfortunate events. Reach Anthony on Google+, too. 

Image source: http://insurancetown.com.au/wp-content/uploads/2010/07/home-insurance-contents-home.jpg

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