Contents Insurance Cover
Contents insurance covers for your personal and valuable items. It is important to ensure that you obtain the right cover. Home insurance can be limited in some cases. A contents cover helps to fill these gaps. Having the right cover gives you the much-needed peace of mind.
Types of Contents Insurance Cover
There are ideally three policy categories:
• ‘Bedroom rated’- under this plan, the insurer will determine the cover amount based on the bedrooms in the house. Once the number of bedrooms has been ascertained, the insurer provides a standard cover amount. When choosing a plan, ensure that the standard amount offered is sufficient to cover for your possessions.
• Sum insured- under this plan, you need to calculate how much your possessions are worth. This will determine the cover amount.
• Unlimited sum insured- this is an open limit plan that will cover for all the contents in your home. Under this plan, you need not worry about not having sufficient cover.
There are certain considerations you need to make when choosing a contents insurance plan.
The definition of valuables often differs from one provider to another. It is crucial to read the fine print and ask as many questions. Be keen on the limits and ask how much the insurer will pay out in a claim. If you have an item that is worth more than what is referred to as a ‘single article limit,’ you need to inform your insurer. In most cases, you will need to top up for such items to be included on the cover. It is important to disclose the high-value items you have and discuss each of them with your insurer. Ensure that you keep records of the receipts for those items. Once you have the written agreement, counter check that all the items are correctly listed.
Check with the insurer if the cover caters for accidental damage. In most cases, accidents caused by pets are not covered. Having a cover that includes damage from water is also important. In the event of an accidental leak in your house, this provision will be very useful.
Additional contents insurance options may include:
• Personal possessions cover- this includes items like laptops, jewelry, and wallets that are taken outside the house.
• Legal court costs
• Accidental damages such as paint spills.
Youi Contents insurance policies differ widely. As a homeowner, you need to keenly compare the cover features to ensure that you are adequately covered.