Regardless of whether you rent or own your home, the stuff that you have in your home and their value can soon add up. What would happen in case the contents of your home like clothing, furniture or electronics get stolen or damaged? Well, you needn’t worry as the homeowners, renters and condo insurance policies always cover your home contents and this is described in majority of the policies as personal property coverage.
This coverage safeguards your belongings from different risks like theft or fire. Hence, if there is someone who breaks in and steals your music system or your furniture and clothes are all ruined due to a fire, you will find this type of insurance covering the loss.
Contents Insurance – What is it?
Contents insurance is designed in such a manner that it can safeguard your belongings. As a part of general rule, contents are those things which could all be carried with you in case you decided to move from one house to another. In case you have to replace each and everything that you have in your house after a fire accident, calculate how much that would cost you. The resulting figure will be somewhere in the tens and thousands and this is where you will require a contents insurance policy.
Contents insurance – iSelect policy safeguards your stuff against damage or theft from flooding or fire. Things can include:
- Entertainment like CDs, DVDs, books and video games and vinyl
- Furniture like sofas, beds, dining tables and wardrobes
- Kitchenware like pans, pots, cutlery, kettles and microwaves
- Electricals like DVD players, TV, games consoles, laptops and digital media
- Clothes and jewellery
Is it mandatory that you opt for contents insurance?
No, it is not at all mandatory that you get contents insurance policy. When you take out a mortgage loan for buying a house, you might require taking out homeowner’s insurance policy but that doesn’t mean that taking out contents insurance policy is also mandatory. It is totally optional but getting one is definitely a sensible idea.
For how much amount should you insure your belongings?
You should insure them for an amount that the belongings are worth. Ideally you should wish to sufficient coverage so that you could anytime replace all your belongings on your own. Initially, you may find it daunting enough to get a clear idea of the amount that your home contents is worth but once you start keeping a tab on it, it will soon become easier. You may even use a contents calculator to keep a tab on the prices of the things that you own in your home.
Finally, when you’re buying the contents insurance policy, don’t just hit on the ‘buy’ button blindly as it is always a wiser option to compare and contrast rates from several insurance lenders. Choose the one which gives you best coverage within the most competitive rate. Not always is the cheapest the best policy.