Alternatively known as home contents insurance, a policy of this nature basically provides cover for all the items that a person would typically take with them when moving house. This means that you will be able to claim for items that have been stolen from or damaged in your home. In the event of loss or damage you can therefore get cover for the following personal belongings and household possessions:

• Electrical appliances, like a washing machine or television
• Furniture
• Clothing
• Food and drink
• Furnishing
• Specified valuables
• A limited amount of cash
• Loose carpets and rugs
• Gardening tools
• Locks and keys
• Certain kinds of medical expenses

Whose Assets are Protected?

Household contents insurance usually covers any possessions that belong to you and your close family members that live with you. This includes the belongings of your husband, wife, civil partner, children, parents, and any other close family members living with you. Depending on the insurance company you are dealing with, the policy might automatically include any individuals that are cohabiting in their definition of ‘family members’, such as a roommate or close friend, but this will vary with each individual insurance policy.

Under What Circumstances Will Cover Be Provided?

The normal circumstances that qualify for a household contents insurance claim are in the event of the following incidents taking place: fires, flooding, and storm damage, as well as theft or attempted theft.

On the other hand, if accidental damage or loss should occur that affects your household items, insurance will not provide compensation unless a special arrangement has been made. The only exceptions are mirrors and fixed glass in furniture and televisions – but you do have the option of extending your policy to cover accidental damage to a wide range of contents in your home, which will cost you extra.

When Will Contents Cover Not Be Provided?

Before signing on the dotted line you need to be aware that with many types of household contents insurance, you may not be covered under the following scenarios:

• If you do not adhere to the conditions of your policy
• In the case of normal wear and tear
• For any exclusions in your policy, which may include items like jewellery, mobile phones, or other valuables
• If you are underinsured – in some cases though, the insurance company may still agree to pay a portion of your claim
• If there is a limit on the amount that can be paid out for any single item
• If you have to pay an excess
• In the event that your insurer has the right to provide a replacement item or repair the item, rather than giving you the money to replace it

New for Old Cover

Most household contents insurance policies insure your contents on a ‘new for old’ basis, which effectively means that the items would be replaced as new if destroyed by an incident that is stipulated in the terms of the policy. Certain items however, such as clothing and bedding, are usually not included in this type of cover. When insuring various contents it is important that you do not undervalue them, otherwise the insurer will not pay the full value of your claim. You should therefore add up the value of:

• Items at their current replacement cost as new (excluding clothing, and household linen or carpets over five years old).
• Clothing, household linen and carpets over five years old at their current replacement cost as new, including a deduction allowance for wear and tear.