Contents insurance for beginners
After a big makeover, it is definitely a good time to update your contents insurance policy.
Contents insurance is designed to give you peace of mind, because even if you’re careful you can’t always control things like extreme weather, theft or fire. Should you get contents insurance? The simple question to ask is – would I be able to afford to replace all my belongings if something happened?
How do I work out how much to insure my contents for?
Start by adding up the cost of everything in your home – walk through every room in the house, including the garage, and list everything you own, then the estimated replacement cost. And don’t forget the little things often taken for granted, like crockery, cutlery and cooking utensils.
If your belongings are located at another house, such as your friend's, you will need to insure those on a different policy. Your contents policy only covers the belongings that you or a family member normally keeps in and around your home.
AA Insurance has an online guide to take some of the guess work out of calculating the value of your contents for you. They’ve even listed the average costs of regular household items to help get you started. Once you’ve filled in the calculator, add up the totals to find out how much cover you need, and then you’re ready to get a quote, which you can also do online.
It’s the little things that count
It’s important to note that some items have limited cover unless you specify them separately on your policy schedule, such as jewelry and artwork. If you have anything particularly valuable it pays to specify it.
It’s a good idea to keep your receipts too, as well as a photo or video of your items, and not just the specified ones. Once you gather these images and receipts together, keep them safely off-site or away from your home. They’ll be helpful if you need to make a claim and fast-track the process.