Saturday, January 05, 2008

Home Contents Insurance: Taking Care Of Your Assets

By John Dale

Our homes are precious. Insuring the bricks and mortar seesm second nature to us, not least because our homes represent a major investment and a lot of very hard work to pay for it. We often forget however, just how much we have invested in turning a house into a home with our personal possessions and the cost of furnishing a home for our comfort.

In case of a mishap or a natural disaster you will need a lot more money then thirty thousand pounds to replace the most basic contents of your house. Unfortunately, this replacement is not covered by your building insurance policy. Consider the fact that in case of flood you will need to replace all your carpets, electronics, furniture and much more.

Home and content insurance covers our houses and flats and the contents in it. It is financially the right thing to opt for home contents insurance. The reason behind this is the fact that not everything is covered by the buildings insurance policy. Consider the time where roof of your house has been damaged during a storm. The buildings insurance policy will replace the roof but will not pay for the cost of fittings. The home contents policy will make this all possible at a relative affordable rate.

Contents insurance cover cannot replace valuable heirlooms or collections that have taken years to accummulate but it can alleviate the financial loss and help you replace the irreplaceable. Contents cover tends to make owners seriously consider the protection of their valuables and review the security arrangements that may help prevent loss or aid in the recovery of their belongings in the event of theft or loss.

When considering a home content insurance you need to consider how much coverage they are going to provide for instance cash is not covered by most but those who does it is under strict conditions. Some policies will not cover equipments outside the house whilst some does. Understand their terms and policies such as if they provide coverage outside the house or not for instance insurance for a bicycle. In addition, you should also consider which of the companies provide cheap home content insurance.

Given the variation and different features and options that can be included or excluded with a contents insurance policy, the ability to compare one policy to another on a fair basis is important. You must check the policy terms and conditions very carefully so you know exactly what is insured and what is not. This is a difficult task even for experts so take your time and do not hesitate to seek help with this.

Contents cover nevertheless, tends to be reasonably cheap and the cover provided offers a very good deal to the policy holder. Setting up a contents policy is frequently done at the same time as insuring the building but this is not always the case. It also pays to check whether combining a policy with the buildings insurance is the best deal for you financially so be prepared to shop around.

Home content insurance is something that should not be ignored. We sometimes live in an illusion that it will not cost much when it comes to replacing our possessions. It is always recommended that you take necessary steps to cover the loss or be ready to pay for the losses. No price is too high compared to the peace of mind it brings. Paying a few pennies to protect the things you have worked so hard to make is not a very high price to pay.

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