Content insurance is important to every homeowner, as it offers good cover in case of theft and accidents. Any damage to possessions present in your home is covered by this insurance, while the damage to the structure is covered by the buildings insurance. Knowing the typical coverage included in contents insurance will help you decide on whether it is sufficient or any additional cover is needed.
The contents insurance basically covers damage caused by natural calamities like lightning, fire , earthquake, flooding, storms, falling trees or man-made damages like riots, vandalism, theft, explosion, leaking oil or water, moving object like a car crashing into your home, etc.
The coverage also includes instances like
- The legal liability you have as the one occupying the house, like for instance, injury to a visitor while in your home
- The cost of storage and accommodation, if you are not able to live in the house, due to the damage caused by flooding, fire and other causes
- Accidental damage occurring to equipment you own like computers, glass furniture, DVD players and stereo equipment
- Replacing the locks and keys and the cost of labor involved in repairing it, if you damage or lose the keys
- Food loss due to breakdown of freezer
- Cash stolen from your property
- Contents of outbuildings
There are optional coverage factors, which you should know of as the standard insurance cover, while including accidental damage cover to equipment you own will not cover the damage caused to furnishing or goods. But when you pay for the additional cover, you can include these items in the cover. If you own hunting tools they can be insured in this way, if the initial cover does not include them. For household furnishing and other goods, the additional cover is worth it, if there are young and active kids in the house. Otherwise, it is not necessary.
If you own personal possessions that need cover, while you are away from home like smartphone, digital camera etc. you may look at extended cover. Also termed as ‘All risks’ protection, this type of cover prevent loss of any of your possessions, while you are away from your home or abroad. But there are many limitations as to how much cover can be provided. You need to check with your insurer and know the terms and conditions properly, before you get the cover.
Cover for legal fees
In case you are involved in legal proceedings, to take action against or defend a particular claim, the legal expenses insurance, will cover the legal charges you incur in case of injury to you or your property, disputes at work, consumer damage and for any situation related to award of legal costs of the other party. While this cover is considered as part of the standard house insurance, some may charge additionally for providing it.
Other than those mentioned above, there is the downloads insurance that covers the cost of replacing all the ringtones, films, music and other files you had downloaded on your laptop, iPod or smartphone. This type of cover has become part of the standard contents insurance now.