Most people in the United Kingdom don't totally understand the concept of contents cover. It's important to know the value of everything in your home, so if you need to file a claim, you will receive the full value of its contents. It is highly advised that you create a list of contents and assign a value to each one. Keep in mind most insurers will request a defined sum insured, which is the maximum your policy will pay out for contents. For example, if you indicate the contents value is £20,000 and you insure for £20,000, you are covering correctly. If a rug valued at £2,000 needs to be replaced, you would receive the full value. However, if you list the contents value at £10,000, you would only receive £1,000 from your insurer. That's why is crucial to know the contents value of items in your home.
Variables To Consider When Purchasing Contents Insurance
Insurers will usually offer add on options to standard contents
cover. The include:
Buildings & Contents Cover Combined
There are many UL
insurers to choose from such as
Direct Line or
Churchill home insurance.
If you choose to go with one insurer for buildings and contents
cover, there is usually a discount. Before you do this, use a price
comparison homeowners insurance website to make sure a combined
policy is the best policy for you. One insurer may be great for
buildings insurance, but may not meet your needs for contents cover.
Research all available options.