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Contents Insurance made clear

Contents insurance is a type of home insurance. The things in your house that are not part of the physical structure are not covered by your buildings insurance policy, which your mortgage company will probably require you to take out. Although it is optional, contents insurance is there to cover the costs of repairing or replacing your things if they are stolen, destroyed or damaged by flood or fire.

There are lots of different of home insurance products on the market so you should be able to find a policy with the right level of cover to suit your needs.

Slightly more expensive policies usually give more protection, for example some insure items such as laptops and cameras even when you are away from home. The cheaper policies will give basic cover, but the price of the home insurance policy you buy will usually significantly affect the level of financial protection you get.

The cheapest type of contents insurance is indemnity insurance, which will pay only what your damaged or lost property would have been worth to sell. This means that if your one year old camera is stolen, you would only get the price of a one year old second hand camera, and not what it would cost you to buy a brand new replacement. You may decide it is worth paying a little more for a new for old policy that pays you the money to buy a new replacement for your old damaged or stolen goods.