Do you know how much it will cost to replace your home and possessions should something happen? This is the reason a home and contents insurance exists because this will help compensate for financial loss.
With this type of insurance, you get to protect yourself from financial risk should your home get damaged or destroyed and cover your home’s contents if they are damaged.
Home and contents insurance covers two things:
Home Insurance
Home insurance is designed to protect you from the financial consequences of damage or destruction of your home. It can also cover other people injured on the premises when an accident occurs.
It also provides cover for the loss of your possessions. This includes personal belongings like clothes, furniture, appliances, and tools. Damage or loss caused by water and mould are also covered.
Contents Insurance
The contents portion of your insurance will cover the replacement cost of your home’s contents if these are damaged or destroyed. This includes things like clothes, furniture, appliances, and tools.
The Home and Contents Insurance Coverage
Different insurance providers have different levels of coverage in their policies. You can't assume that your policy covers everything you own. Here are the different levels of coverage you'll encounter as you research.
Standard Contents
Most insurance policies protect your possessions against defined events, like storms, fires, or burglaries. If any of these occur, your coverage will reimburse you for the cost of the lost items.
Specified Items
Specified items coverage will replace covered items up to certain monetary limits. For example, you could add coverage for jewellery or a special family heirloom. You may want to look into this type of coverage for high-value items.
Accidental Damage
Accidental damage coverage will protect your possessions against damage caused by fire, smoke, lightning, explosions, falling objects, and riots.
Flood Insurance
Flood insurance is available to homeowners living in flood-prone areas. It will cover damage from flooding and provide coverage for some structural damage.
Portable Contents
Homeowners can increase the value and limit their out-of-pocket costs with portable contents coverage. It will protect you against damage to your electronic equipment, jewellery, firearms, and other valuable items.
Is a Home and Contents Insurance Right for You?
To determine whether you need a home and contents policy, you need to consider the items you own and how much it would cost to replace them in the event of a major loss.
You also want to look at how much money you would need to rebuild your home in a disaster. Also, you may want to look at your current assets, what you owe on your home, and how much you stand to lose if that investment is destroyed.
The most important thing to do is evaluate your financial risk regarding your home and the possessions you value most. After that, you can decide whether you want to look into purchasing a home and contents insurance policy.
The Bottom Line
When it comes to your home, there are a lot of things you need to consider in terms of property damage and your possessions. You don't want to leave anything to chance, and you want to be confident that you are protected if you come up against a crisis. For this reason, a home and contents insurance policy can be an excellent idea.
Are you thinking of getting home and contents insurance? New Wave Insurance has a team of the best insurance brokers to help you out. Get in touch with us.