Repairing or replacing your possessions in case they are lost, damaged or destroyed. It covers everything you’d take home if you moved, including furniture, kitchen appliances and curtains, as well as clothing, jewellery, computer equipment, and television.
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You should ensure that your contents sum insurance is correct. This is the maximum amount your insurer will pay if you file a claim. You should insure your contents for the replacement cost, not their current value. You should reevaluate the contents sum insured every so often, especially after buying expensive items or after a Christmas or birthday. You should verify that the contents policy limits are sufficient to cover all your belongings. Learn more about the valuation of your contents insurance.
A contents policy usually covers one item, like PS1,500. You will be covered for contents less than the limit. However, if you have expensive items like jewellery, works or art, you might need to pay an additional premium.
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Many contents insurance policies cover the cost to replace or repair your possessions if they are damaged or destroyed by an insured event, such as:
- Flooding
- Subsidence
- Fire
- Storms
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Water damage and burst pipes, including frozen pipes
- Theft
Most contents policies do not cover items that have been damaged or destroyed by:
- General wear and tear
Electrical or mechanical breakdowns, such as fridges that fail due to their end of useful life.
Restricted coverage when your home is vacant for a prolonged period of time (specified by the policy) or rented to tenants
- Any amount that is greater than the policy’s limits
Many insurers offer the following extensions:
- Accidental damage to your contents: For example, paint spilling on the sofa, or the TV being knocked over and breaking it
- You can also get coverage away from home – Also known as “all-risks”, you can protect your belongings from damage or loss while away from home up to a certain asset limit. You might need to separate jewellery, laptop computers, and bikes that are more likely to be stolen or damaged.
- Coverage for legal expenses – This usually gives you access to professional advice and covers legal costs associated with claiming compensation after an accident that wasn’t your fault. It also covers the costs of taking ordefending any other specific legal actions such as employment or neighbor disputes.
- Home emergency assistance – This pays for the cost of calling in a tradesman to fix an emergency such as a broken boiler. If you are unable to stay at home, it will pay for the labour and repairs.
How does an insurer decide the cost for contents insurance?
When calculating the contents insurance premium, insurers take into consideration a number of factors such as:
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- Consider higher-risk items like jewellery when valuing your contents
- Consider where you live. Some areas are more likely to flood or have higher crime rates.
- Previous claims history
- Security measures Certain security measures may be offered at a premium discount by some insurers.