What does a typical contents insurance cover?
This coverage is sometimes known as "contents insurance," but is usually described in most insurance policies as personal property coverage. Contents insurance helps pay to replace or repair your personal belongings if they're stolen or damaged by a covered peril, such as a fire.
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.
Personal property coverage — also known as contents coverage on a home policy — helps cover the cost of your personal items if they are destroyed, damaged, or stolen due to a covered loss or peril. Personal property includes things like furniture, clothing, electronics, and kitchenware.
Every insurance policy has five parts: declarations, insuring agreements, definitions, exclusions and conditions. Many policies contain a sixth part: endorsem*nts. Use these sections as guideposts in reviewing the policies. Examine each part to identify its key provisions and requirements.
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.
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.
What's Contents Insurance? RACV Contents Insurance covers the cost to repair or replace things you keep inside your home that have been damaged as a result of an insured event. It includes furniture and rugs, fridges, washing machines, TVs and more.
A limit is the maximum amount your policy will pay toward a covered claim. A deductible is the amount you pay out of pocket before your insurer will help pay toward a covered claim. You may be able to choose your coverage limit based on the value of your belongings — for example, $50,000 of contents coverage.
Contents insurance covers personal items like furniture, clothing, bedding, rugs, electrical items, whiteware and other personal effects.
Taking a full home inventory (including items kept in a storage facility) and maintaining a list of your possessions – especially the most valuable – is the best way to ensure your coverage limit accounts for your belongings. The sum of the value of all your items is how much coverage you need.
How do I list contents for insurance claim?
Start small. You could start your home inventory by listing things you'd normally expect to be covered by your contents insurance, like electronics or appliances. Once you've listed the big-ticket items, think about what else you'd like to include, such as jewellery or other valuable items.
- Create folders. Start by doing a walk-through of your home, making sure to hit every room in the process. ...
- List your items. ...
- Add notes. ...
- Include documents. ...
- Take photos. ...
- Record a video. ...
- Attach a home appraisal. ...
- Create a backup copy.
Full coverage auto insurance is a package policy that combines the three basic types of auto insurance coverage – liability, medical, and physical damage – that gives you more protection than the minimum coverage required by your state.
| Property Type | Average contents value |
|---|---|
| Two bed house | £30,739 |
| Three bed house | £41,056 |
| Four bed house | £45,008 |
| Bungalow | £44,158 |
The average combined home and contents insurance policy costs £140 a year in 2021, according to Money Supermarket (Opens in a new window). That's just £2.70 a week. Worryingly, the Association of British Insurers (ABI) say around 7.5 million households have no insurance at all.
- Antiques.
- Jewellery, or anything that is made from gold, silver or other precious metals.
- Paintings and other forms of artwork.
- Watches and clocks.
- Rare books.
- Electric wheelchairs/mobility scooters.
- Sporting equipment.
- Garden equipment.
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.
Property insurance: protects against loss or damage to tangible property, such as a building or its contents. It typically covers damage caused by fire, theft, and natural disasters. Liability insurance: protects against financial loss from legal claims made against the policyholder.
| 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 |
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.
Is my washing machine covered in contents insurance?
Your contents cover does include kitchen appliances that are free standing, such as washing machines. But if your appliance is built in, it will be covered under your buildings insurance. There's no cover for your washing machine if it breaks down.
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.
Most insurers set the limits for your possessions, (“contents”) as a percentage of the limits on your dwelling. Contents limits are typically set at 50-75% of dwelling limits. Most insurers sell a replacement cost endorsem*nt that only increases dwelling limits.
Also known as your coverage amount, your insurance limit is the maximum amount your insurer may pay out for a claim, as stated in your policy. Most insurance policies, including home and auto insurance, have different types of coverages with separate coverage limits.
Replacement cost value is the amount it will take to replace your property or belongings without any deduction for depreciation. Actual cash value is the replacement cost value, minus depreciation.
