A wise friend in insurance
Home Insurance - Contents insurance
Searching for cheaper home contents insurance
We would suggest two main approaches to organising your shopping around to obtain the best mix of price and piece of mind that you can.
1. Most people want to buy their insurance from an organisation that they have heard of and that they know and trust. If you fit into this type you could choose from our list of leading direct insurers and brokers and obtain quotes from a range of those. This approach takes more time but will result in a decision that you are confident in.
2. If you want to see what the very cheapest price is that you could get for your home insurance then you should go to either Confused.com or MoneySuperMarket you can then either go for the cheapest overall or for the cheapest insurer that you feel that you would have confidence in.
Of course you could use a mixture of these approaches but before you go off into the Internet wilderness it’s a good idea to do some preparation.
Home contents insurance
ABI guide to Home Contents Insurance
Your policy can be either “New for Old” in which items which are stolen of destroyed are replaced with equivalent new ones or “indemnity” in which case a claim is settled on the basis of the value at the time of the loss, in other words an allowance for wear and tear is made. Indemnity policies tend to be less expensive because the amount that the insurer stands to pay out is always less than new for old. When you value your contents and possessions you need to ensure you use the correct basis for valuation.
Some policies have specific exclusions that might catch you out. Here are some important questions that should prompt you to check these specifics in the policies that you are considering if these situations apply to you.
- Does the policy include accidental damage to glass items and things like bathroom fittings?
- What is the maximum time that you can leave your home unoccupied for cover to remain in place? If you are planning an extended trip abroad or have a holiday home abroad this can be very important.
- What exclusions apply if you let out all or part of your property?
- Can you comply with the security requirements of the policy and what happens if you do not?
In addition some policies don’t provide cover for things that you want to have covered. There are all sorts of things that fall into this category so check the specific wording of each policy you are considering. Here are a couple to prompt you to start looking.
- Does the policy provide sufficient cover for items temporarily removed from the home in terms of both their value and the length of time that they can be removed.
- Is loss of keys covered?
Some policies make a deduction for wear and tear on certain items despite the policy as a whole being new for old. Clothing for example is depreciated at a flat 20% per year so a 2 year old jacket would only be worth 60% of its new value.
Some policies automatically cover bicycles up to a certain level, check if this is included and if it is that the cover is sufficient for your needs. A couple of high value mountain bikes would exceed the cover provided by many policies.
Personal Possessions
Some policies include personal possessions as standard both in and outside of the home. Personal possessions are generally described as things which can be worn or carried about the person. So things like clothing, luggage, cameras, ipods, mobile phones, sporting equipment and spectacles may be covered as an extension to many policies but you need to read the specific wording to ensure that items that you want to have covered by insurance in fact are. If you need to apply for and pay for this as an extension and you want the cover make sure that you do apply.
Money, valuables and collections
You need to pay particular attention to the provisions of the insurance policy that you are planning to buy in terms of the cover that it provides for your money, credit cards, valuables including art antiques and jewellery and any collections of music, books, porcelain or other items that you have. Many policies require that these be individually itemised in your proposal, others may require independent valuation or may even restrict the cover for collections so that their value is not enhanced by the completeness of the collection for example. If in doubt disclose the details of all of your valuables and collections before you commit to buying a policy and ask the individual insurer about what information they require to ensure that they are properly covered.
Valuing you home contents and possessions for insurance purposes
Your home contents and personal possessions consists of the moveable contents of your house that you would remove if you moved house. This includes your carpets and curtains but does not included fixtures and fittings such as your kitchen cupboards (unless these are free standing).
Are You Under Insured?
Many sources suggest that very many of us are under insured. Hiscox Insurance for example undertook a survey in 2003 and found that 40% of their clients had undervalued their home contents and possessions
Boats, caravans, trailers etc usually insured separately may be added to some home contents policies.
