Contents insurance is the provision of an insurance policy that covers accidental damage or theft of all moveable contents inside the property. This typically includes furniture, appliances, and soft furnishings. Carpets are also usually covered under contents insurance, but as with any policy, it is best to read through the small print to see exactly what is covered and what isn’t. If in doubt, ask.
Is it a legal requirement to have contents insurance?
No. It is up to the homeowner whether they wish to take out a policy to provide cover if there was any accidental damage or they were burgled. However, it is wise to consider the cost of replacing items if the worst did happen.
Some people prefer to save the monthly or annual cost of this type of insurance into a savings account. Since claims against these policies are typically rare, the reasoning is that you could save up enough to cover the cost of replacing items if anything did happen. This is a personal decision though, and you should weigh up the value of the items in your home before considering this step.
It is also important to make sure any policy you take out is enough to cover the contents of your property. It is easy to underestimate the total value of your moveable contents. It is best to take one room at a time and to consider what it would cost you to replace each moveable item in that room.
If you own a lot of collectables, make sure the policy will cover them. Some people take out a separate specialist policy for valuables that are worth more.
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