| Put simply contents cover insures all of the | | | | requirements. As well as all the obvious |
| items within your home, with some policies | | | | items, there are some that may or may not be |
| covering those items kept outside, or within | | | | included a standard. |
| out-buildings too. | | | | |
| | | | Examples include; items that may be used |
| Although there are many "smaller" options and | | | | outside of the home (e.g. laptops, bicycles, |
| added extras, there are two main types of | | | | handbag or wallet contents). |
| policies that you can choose to cover your | | | | |
| possessions. | | | | The number and type of eventualities |
| | | | resulting in a payout will also vary |
| Firstly there is "New-for-Old" cover, which, | | | | considerably from policy to policy, typically |
| in the event of a pay out will ensure all of | | | | though, cover against theft; fire, flooding, |
| your possessions are replaced with new | | | | earthquake and vandalism are included. |
| counterparts. Although the premiums for this | | | | |
| kind of cover may seem a little steep, it's | | | | Wilful damage and damage caused by DIY |
| important to take into consideration the high | | | | though, are common claims that are rejected. |
| values of depreciation for certain items such | | | | |
| as furniture and electrical equipment. | | | | The value of your possessions is likely to |
| | | | far exceed what you would expect, so as a |
| Secondly is "Indemnity" cover, which tends to | | | | rough guide; you should move from room to |
| be the cheaper option of the two, as if the | | | | room, calculating how much it would cost to |
| insurer has to pay out, they will deduct the | | | | replace each item from new. |
| cost of everyday "wear-and-tear" from each | | | | |
| item replaced. | | | | With this in mind you should then be able to |
| | | | see if the amount of home insurance you have |
| The breadth of cover you require will vary | | | | is relative to the value of your possessions. |
| greatly depending on your individual | | | | |