Household Contents Insurance
Household Contents Insurance protects all your household contents against fire, water damage, theft, glass breakage, etc. Household contents insurance includes all personal movable property that belongs to you or to family members living in the same household. Coverage also includes items that are leased, rented, entrusted to you or brought into your home by guests.
Why should I take a household contents insurance policy?
- Policy is tailored to your needs depending on the contents within your home.
- Calculation of the sum insured for household contents is straightforward and is usually made either on the basis of living space in squared meters or with the help of an inventory form
Household Contents Insurance protects you from many risks. The table below illustrates the kind of risks that this type of insurance covers.
|Fire||Fire, smoke, lightening, explosion, implosion (e.g., television tubes), scorching|
|Damage by natural forces||High water, flooding, storm, hail, avalanche, snow pressure, rock fall, falling rock, landslide|
|Theft||Burglary, robbery and simple theft, malicious damage to property (vandalism), even in cases where nothing is stolen|
|Water||Damage caused by rain, snow, melting snow or ground water inside the building, as well as by blocked drains, water leaking from mains pipes and from facilities and apparatus connected to the mains as well as water beds and aquariums, damage caused by oil from heating systems or oil tanks|
|Glass breakage||Breakage to glass in the building and in furniture or to synthetic material in furniture (including glass ceramic hobs) as well as to wash basins, WCs, bidets, tables and stone kitchen worktops|
Buildings and Contents Insurance
Buildings insurance pays for repairs to the fabric of property if it is damaged by occurrences beyond the occupants’ control such as fire, theft, storm, flood, burst pipes, subsidence and explosion: if the property is totally destroyed, the policy will pay for it to be rebuilt. Fixtures and fittings outside the property such as outbuildings, patios, paths, drives, walls, gates, hedges and fences may also be covered. Some policies will also pay for repairs to permanent built-in fixtures within a property, such as a fitted kitchen or bedroom furniture and central heating systems. Including cover for accidental damage to the fabric of a property is likely to increase the policy’s premiums. Most mortgage providers insist that borrowers take out a buildings insurance policy.
Contents insurance (which covers the same potential perils as buildings insurance does) provides cover for household items which are not fixed to the property. Furniture, jewellery, appliances and clothing: some policies will cover the contents of refrigerators and freezers and may also offer the option to cover personal belongings such as iPods for example.
Claims are settled either on an indemnity basis or a new-for-old basis. Indemnity policies take into account wear and tear when paying a claim, so the pay out may not be sufficient to buy a brand new replacement. Whereas new-for-old cover would replace a two-year old appliance for example with a brand new appliance. Including cover for accidental damage to the contents of a property is likely to increase the policy’s premiums.
Items typically covered by contents insurance policies – and all subject to maximum limits – include money; losses on stolen credit cards; office equipment; the fitting of new locks; replacing broken mirrors or glass; damage to, or theft of, deeds and other documents; loss of metered water and damage to, or theft of, satellite equipment.