| Contents Insurance: Contents Insurance Advice. All moveable things in your home, including money that belongs to you and all your family members who live with you are covered under contents insurance. Now a days, contents insurance policies cover all your belongings either on an indemnity basis or on a replacement (new-for-old) basis. While indemnity coverage ensures that, you get only part of the claims deducting wear and tear of the items, replacement or new-for-old ensures that, destroyed or stolen items are replaced with new ones. The latter ensures that your claims are met in full unless the contents insurance company insists on only repairs and not replacements.
Most of the standard contents insurance policies cover items in your home against damages or loss caused by fire, lightning, earthquakes, explosions, storms, floods, vehicle crashes into your home, falling trees, telegraph poles, lampposts etc, burglaries or attempted burglaries, riots, vandalism, damages caused due to broken water pipes, heating systems etc. How Much Coverage Do You Require? The amount of coverage depends partly on which type of policy you'll choose. Sum insured policies are policies that are based on the premium you pay for the cost of replacement of all the items in your home (new-for-old cover) or on what these items are worth in current times (indemnity cover). The total amount is known as 'sum-insured'. Make sure the sum insured includes everything you own in the house, and pay special attention to getting the right amount as sum insured. A very low means your belongings will be under insured, while a very high figure will mean your belongings are over insured. This doesn't mean that you can get all you claim for as the insurer will verify the cost of the items before paying you.
Ensure that you value your possessions carefully. Under insurance of your items needs to be avoided, even though this may be a time intensive and tedious job. After all, it's essential that you are paid in full for all or any claims you make. Whatever you policy type, you will need to ascertain a specific amount as cost for replacing all your high-risk belongings. High-risk items include things like TV, Amplifier, Speakers, Hi-fis, Cameras, CD Players, Computers, Watches, Jewellery, Fur Coats, Valuable Pictures, Works of Art, Antiques, expensive sports equipments, etc. It's wise to opt for new-for-old cover. The best way to work out the total value of all your high-risk items is to simply find out (from newspapers, ads, shops) the amount you will be required to pay for replacing everything on the list. It's highly likely that the insurance company will want to see proof that you owned these items in case you ever file for claim. Therefore, save all your receipts, or if you don't have the receipts, then take photographs of your items as proof. If you have repair bills or any other paperwork that can act as proof that, you own such high-risk items, then save these as well. For items such as antiques, and timeless pieces of art you may seek professional valuer's services. For other easy to replace belongings, insurance valuation is generally double the sale value. Get your precious belongings insured as part of the contents insurance plan today. |
