If you own your own home and actually live in it then contents insurance is something that you should seriously consider taking out. Generally contents insurance will cover all of your personal possessions within your home from the following types of damage:
- Flood and Storm
The cheapest type of contents insurance is called "indemnity insurance" which generally operates on a like-for-like basis. This means that if you have a 3 year old television that is damaged then it will be replaced with another television of a similar age and specification. The more expensive contents insurance policies will operate on a new-for-old basis meaning that any covered items that are damaged will be replaced with new equivalents.
Some types of contents insurance policies can also cover your for injury in your own home, plus for an extra premium you can also have liability which covers you if somebody else is inuured while in your home. As with anything the more options you add on the higher your premium will be, so it's always important to carefully consider what you need from a contents insurance policy.
High Value Items
Some items in your home might carry some considerable value, check your poliy carefully to see what the upper cut-off limit for high value items is as they might not be covered. High value items will normally be considered as separate from your normal contents insurance policy and you might have to pay extra on your premium to make sure you are fully covered.
Before taking out a contents insurance policy it's a good idea to make a list of all items that you consider to be of higher value and query them with your provider before you buy a policy, this will ensure that you are not caught out should something happen.