Is it worth getting contents insurance?
It is a good idea to take out home contents insurance to cover your possessions against fire, theft and other risks, such as accidental damage. If something happens to destroy or damage your possessions, it can cost a lot of money to replace these items.
Whether you're a homeowner or a renter, contents insurance is one of the best ways to protect your belongings against loss or damage. But contents insurance doesn't just protect your things, contents cover comes with a range of additional benefits that protect the policy holder, which can come in handy for renters too.
To claim or not to claim? Before filing a claim, consider the cost of the excess and the potential for premium increases against the cost of the damage. In cases of minor damage, it might be more economical to handle the repairs yourself to prevent future hikes in insurance rates.
The contents part of your insurance protects you if any items in your room or home are damaged or stolen. Most decent contents insurance policies will cover: Damage to your contents caused by storms, flooding, earthquakes, fire, lightning, explosions, theft, riots and vandalism.
Contents insurance covers loss and damage caused by defined or insured events. These can include fire, storm, theft and vandalism. It's worth checking what isn't included. For example, damage caused by floods, intentional or criminal damage, or theft if you leave windows or doors unlocked.
How does contents insurance work? If something goes wrong, like a burglary, leak or fire, you can make a claim to the insurer for any items that are damaged, lost or stolen. They'll then check if your situation is covered and work out how much money they'll give you.
The cost of home and contents insurance is on the rise due to high inflation and increasingly frequent natural disasters – such as bushfires, cyclones and floods – leaving those who do not shop around penalised for their loyalty.
How much contents insurance do I need? To estimate the value of your contents, include everything in your house that isn't part of its structure. Your contents insurance should cover the full cost of replacing your personal belongings. Don't forget about things like appliances, family heirlooms, jewellery, and clothes.
The insurance representative does not need to know every little detail of your life after the accident. Don't discuss information about your family, your job, past accidents, past injuries, and anything that is not strictly relevant to your accident injury claim. Also, don't answer questions that haven't come up.
The sum of the value of all your items is how much coverage you need. Often, the amount of personal property coverage is determined by using 50% of your dwelling coverage limit. For example, if your dwelling coverage is $400,000, you'll have $200,000 in personal property coverage.
How much should contents insurance cost?
There's no such thing as an average contents insurance cost. The amount you spend on your contents cover will vary depending on the value of your contents, as well as a number of other factors such as where you live and what level of cover you want.
Average Value of House Contents
According to the Association of British Insurers, the value of the contents in an average three bedroom family home is £55,000. That might sound like a lot. But when you think about the combined value of all the different items in your house, it soon adds up.
The best way to calculate the value of your home's contents:
go through each room and don't forget to include items in attics, basem*nts, sheds and garages. if you do not have receipts for all your possessions use the internet or shopping catalogues to help you work out the cost of each item.
Standard home contents insurance only tends to cover your appliances if they're damaged in a natural disaster or another insured event. Specific home appliance insurance is not part of your home insurance. It covers white goods bought from a retailer for breakdowns and accidental damage.
If something happens at your home, like a theft, fire or flood, and your things are stolen or damaged, you can claim for the cost to replace or repair them. For instance, if there's a fire and your TV and games console are destroyed, contents insurance could mean you can claim for the cost of repairing any damage.
Your Contents Insurance Policy covers you for accidental damage to your belongings, including your phone, tablet or laptop.
Check whether the loss is covered by insurance
If you have contents insurance, check your policy as it may cover the loss of your belongings even if they were not in your home at the time. There might be an excess to pay. Learn about what contents insurance usually covers.
How soon can you claim on insurance? Once you've taken out insurance, you can typically make a claim any time after the start date on the policy. It's worth checking what this is as sometimes the date you paid for the insurance isn't necessarily the official start date.
Does contents insurance cover kitchens? Contents insurance covers items found in your kitchen; like fridges, microwaves, cookware, or cooking utensils, if they are stolen, damaged or destroyed by a listed event on your policy. These policies usually do not cover the fit-out of your kitchen.
Why homeowners insurance rates are rising. Several factors are making homeowners insurance more expensive: The increase in the number and severity of hurricanes, floods, tornadoes and other harsh weather has led to a spike in claims in many parts of the country.
Is there a difference between home and contents insurance?
Buildings insurance should cover damage to the building itself and permanent fixtures and fittings. Your contents insurance should cover damage to any items in your home such as clothes, electronics, furniture and carpets.
| Insurance Company | Best for | Average annual premium* |
|---|---|---|
| Allstate | Best overall | $2,326 |
| Lemonade | Best for digital experience | N/A |
| Chubb | Best for high-value home coverage | $3,578 |
| Amica | Best for customer experience | $1,863 |
It's important we validate the loss or damage that has occurred in order to take the necessary steps to repair or replace the contents item/s. Proof of loss or damage can be given by providing photos of damage, details of a police report (for theft), or proof of ownership documents (receipts, manuals etc.).
This means that the floor, roof, windows and walls of your property are covered by buildings insurance, while the furniture, appliances and decorative items are covered by contents insurance.
- Proof of purchase of lost, damaged or stolen items (can be receipts, photos, or invoices).
- A detailed report about what caused the damage.
- Photos of any damaged items (including stickers on items such as TVs and appliances that show the make and model).
