Home/Household insurance consists of two sections. Most insurance companies will allow you to buy both together and provide you a discount as an incentive to do so. There is structure insurance and contents insurance. For people who are moving homes, consider reading our Short Guide to Unoccupied Property Home Insurance Coverage.
Structure insurance will cover the property itself that includes fixtures such as kitchen and bathroom fittings (sink, toilet, bath etc) and running water. The coverage will also protect you from unexpected events such as fire, flood or even subsidence. More info here
Contents insurance will protect your items inside your home. There is usually a maximum amount that an insurance company will cover. If you feel you have items that are worth more, ask the insurance agent to increase the limit. You may have to pay a little bit more but you will be able to be at peace should anything happen. Additionally, if you have any valuable items such as expensive jewelry, be sure to let the insurance company know and show proof of ownership in case you need to file a claim.
What to Consider when Purchasing Contents Insurance
Whether you rent or own, it is advisable to take out insurance for your furniture and other possessions in your home. Contents insurance covers a wide range of damages that may occur to the objects in your home, including theft, fire, explosion, lightning, flooding, storms, falling trees, leaking water and more.
On top of offering you protection for the possessions in your home, contents insurance also covers things such as: your legal responsibility as resident of the house, accidental damage to electronic equipment, replacement locks and keys and locksmith’s fees in the event of losing or damaging your keys, cost of storage and accommodation if you cannot live in your home as a result of the damages and many more others. Remember that not all content insurance policies are the same, and you should be careful about the one you choose.
Different contents insurance policies protect you at different levels and generally you will be covered against fire, theft and flood in the majority of cases. Some of the optional extras for which you will be expected to pay higher premiums include “personal possessions cover”, “accidental damage cover” and cover for when you go abroad.
As with the majority of insurance policies, there is a variety of things that you should not expect to be covered by your contents insurance. These depend on your policy, but they may include damage to computers caused by a virus, the structure of the building such as the roof and walls or wear and tear. In most cases, cover for valuables consists of a single item limit and a total amount for all your valuable possessions. The usual limit for a single item is about $1700 so if you have items that are more expensive than that, such as works of art or jewelry, you may need to purchase extra cover.
The average home has contents worth $50,000, for which a contents insurance policy would be $122 on average per year. When purchasing contents insurance, there may be a temptation to underinsure in order to reduce your premium. You should make sure you get enough cover to replace all your stolen or damaged possessions in order to avoid the situation in which the insurer reduces your total claim payment because your total contents insurance cover is less than what it should have been. More on this website