What types of contents insurance can I get?
There are two types of contents insurance cover, old for new and indemnity cover – both have an effect on your premiums.
- Old for new – no matter how old an item is, if it’s stolen or damaged you will receive a new replacement. If the item being replaced is no longer available you will be paid enough to replace it with a brand new version. This tends to be more pricey but it will give you a better result if you needed to make a claim.
- Indemnity cover – you will only ever receive the current value of your item. For example, if your sofa needs to be replaced and it cost you £2,000 new you will only get what it is worth now which might only be £200. This is usually the cheaper option however it can prove to be a false economy.
Do I need contents insurance if I’m a landlord or renting?
If you’re renting your home, you are solely responsible for your own personal contents. Your landlord is responsible for the building and should have a buildings insurance policy in place to cover the structure and any permanent fixtures. If you’re a landlord and have a property which you rent, you may want to take out contents insurance if your property is part or fully furnished.
What isn’t included?
In general, you won’t be covered for wear and tear or if an electrical item breaks down rather than it being damaged. If you’ve insured your laptop have you covered the data stored? Some policies include cover for digital information so it’s worth checking. Most policies won’t cover a thief’s usage if your phone is stolen and they rack up a large bill, that will be your responsibility. Lastly, if a thief gains entrance to your home through an open door or window, it could void your insurance completely.
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