Do I need contents insurance for my house?

If you are thinking of taking out house insurance there are two main forms to consider – buildings and contents. So why do you need contents insurance?

What is contents insurance?

When you take out house insurance there are two main areas of cover – contents and building. Whereas building insurance covers the structure of your property – walls, roof, the bricks and the mortar - contents insurance covers those movable household items and can cover everything from your sofa to the frozen food in your freezer!

Contents insurance can cover you from:

• Severe Weather
• Crime, including theft and vandalism
  
• Fire and smoke damage
  
• Subsidence
  
• Burst Pipes.
  
• Water or Oil Leakage.
  
• Damage from falling trees.

Wear and tear

House insurance policies cover contents on an indemnity basis. This means they will deduct for wear and tear, although many policies are on a ‘new for old’ basis which covers the cost of replacement at today’s current market value.

Accidental damage

There are different kinds of house insurance you can take, and many contents policies will cover accidental damage if you pay an increased premium. What kind of accidents can happen? Anything from putting your foot through a floor to breaking a window.

Antiques Roadshow

Your house contents insurance can cover items up to the value of £1,000 and £2,000 depending on your insurer. But if your attic is full of antiques or a distant great aunt dies leaving you with family heirlooms and treasures, you must always specify each treasure separately and pay an additional premium. And you will also need to give your insurer a recent valuation. Don’t make the mistake of thinking that valuable Ming vase is covered in your general contents house insurance or you could get a nasty shock. That’s why the experts on the Antiques Roadshow always advise people to insure their individual items (or take them to the nearest car boot sale!)
Make sure you regularly review your policy as collectible items often gain value at a quicker rate than inflation.

Do I need, ‘All Risks Cover’?

If you have a tendency to leave your specs on the commute home, forget your designer jacket at the restaurant or are worried about your baggage being stolen when you go abroad, than All Risks Cover is worth considering on your house insurance. This basically buys you additional cover to include your property when you are outside your home.

Special features

Some house insurance includes special features for your contents – including legal expenses, food spoilage if a freezer breaks down or insurance for your garage or outbuildings.
You should always work out how much your possessions are worth and shop around for the right policy for you.