What is Household Contents Insurance?

Happy family sitting on couch together watching tv at home in the living room
Happy family sitting on couch together watching tv at home in the living room

It’s important that you have the right cover in place if you ever become a victim of theft, fire or flood damage. You may end up needing to replace a lot, if not all, of your belongings. Contents insurance is designed to protect your belongings. Think to yourself: “If I had to replace everything in my house after a fire, how much would it cost me?” Chances are that the figure is in the tens of thousands. This is where contents insurance would work like a blessing. A contents insurance policy protects your stuff against theft or damage from fire and flooding. This could include things like:

• Furniture – beds, sofas, wardrobes and dining tables.
• Entertainment – DVDs, CDs, video games, books and vinyl.
• Kitchenware – pots, pans, cutlery as well as microwaves, kettles etc.
• Soft furnishings – cushions, curtain and bedding.
• Electrical – TVs, DVD players, laptops, games consoles and digital media.
• Toys, ornaments and antiques.
• Clothes and jewelry.

The list goes on, and you’d be surprised at how much it all adds up to.
Most insurers operate under one of these two types of policy. The first is indemnity – a policy that takes into account wear and tear on items that you claim for. So if your six-year-old rug ruined by leaking water, any payout you’d get for the rug might be reduced because of its age. The other kind is new for old, which pays out the full amount for a shiny new replacement. Because the payouts tend to be higher, new for old policies could have higher premiums than indemnity policies.
It is not compulsory to insure your contents. The buildings insurance may be required by a lender before you can have a mortgage, contents insurance is completely optional, but a very sensible idea.

On this note, one would want to know how much insurance is enough insurance. And the answer is very simple- Insure them for what they’re worth! Ideally you want to have enough cover in place so that you could replace everything you own if something was to happen to your home. “Everything” also includes all the stuff that you would normally forget about, like that exercise bike you threw in the shed after one use. It can seem like a pretty daunting task, but it’ll be worth it to get an accurate idea of how much everything is worth.

An easy way to work out the value of your contents is to go room by room and tot up how much each type of item adds up. Those very expensive contents of yours are what you would want to insure first. These are classed as high-risk because of their value – they’re a more tempting target for burglars, and could be more difficult to replace.
When your house get’s broken into, who do you call? Depending on how long you have lived or have owned your house, it is likely to be filled with things both essential and precious to you. And the only time you realize how many things you own is when they are damaged or stolen. With Alpha Direct’s household contents insurance you can sleep peacefully knowing that you can claim for items stolen or damaged at your home. With this cover we will cover your household contents against theft, intentional damage to your valuables, as well as damage caused by a power surge or a burst geyser.

Even damage to your contents due to fire, lightning storm, hail and flood is covered. This also takes care of your personal liability which covers you if your domestic worker gets injured while on duty or where you may be held responsible for causing death or injury to someone else or damage to their property.