Contents insurance

Contents insurance is insurance that covers damage to your household contents. Contents means all the movable items in your household. These are your possessions that are not attached to your home and you can think of it as anything you would pack and take with you when you move. So furniture is included in household contents, but a kitchen is not. Contents insurance covers all these loose possessions for when damage is sustained or you lose something. Often this would be damage from a burglary, vandalism or fire.

What exactly does contents insurance cover?

If you buy your own home, it is often recommended that you purchase contents insurance. However, it is not mandatory. There are good reasons why contents insurance does make sense. For one, you will always have something to fall back on if your home is affected by fire, flooding or if a burglary has occurred. Here you can find out exactly what is covered by your contents insurance and why it is so important.

What is covered by contents insurance?

You may be amazed at how many items and possessions are covered by your contents insurance. For example, your pets are also considered household contents, as are your possessions that are outside, such as a flagpole, garden furniture and laundry hanging outside. If some of this is stolen, you can use your contents insurance to get compensation for it. Solar panels are also often covered by contents insurance because even though they are attached to your roof, they can be taken with you when you move. All of these properties are insured in the event of:

• Flooding;
• Explosion;
• Fire;
• Lightning strike;
• Burglary and robbery;
• Searing and melting;
• Storm of at least wind force 7.

So what is not covered by contents insurance?

It may seem that contents insurance covers all damage to your possessions, but this is not true. Suppose you caused the damage yourself, such as because you knocked over an art object with the vacuum cleaner, then in most cases this will not be covered. Even if it can be shown that the damage was the result of overdue maintenance on your part, your claim will likely be denied. Solar panels that are not properly attached to your roof and therefore blow off during a small storm are also usually not compensated. For this, you will then have to appeal to the installer. However, you can also lose or damage items outside your home. These will not be covered, unless you have taken out "outside the house insurance. This is not covered by default and you will have to insure this separately.

What is the difference between new value and daily value?

An important point to take into account when you go for contents insurance is the value for which your belongings are insured. In case of damage to your belongings, the contents insurance entitles you to compensation of the new value, but there are exceptions. When do you get paid the new value and when the current value?

In the event of damage to your belongings, you want a payment from the contents insurance with which you can buy back the damaged or stolen items. For the payment, it makes a big difference whether the insurer assumes the current value or the new value. The current value is the value of an object just before the damage occurred.

Most insurers will insure your contents at new-for-old value (the amount you understood you paid for it at the time), unless the daily value is more than 40 percent less. This is a good point to watch out for when buying contents insurance.

Taking out household contents insurance? Calculate your premium!

If you own a property

If you have purchased a home, then you also need buildings insurance. You then insure all fixed possessions in your home. Often you can place these home insurance policies, including liability insurance, with a single insurer. This is advisable because it is much easier for you if your home contents and house are damaged, for example by water damage. You then only have one insurer to contact and that makes it a lot easier for you, especially in a difficult period. You can discuss your home insurance with the insurer and make sure that you are covered for everything and that no object or part of your home is left uncovered.

Make a comparison of insurers

Getting good home insurance is very important, especially if you own a home. If you rent a house, contents insurance is often sufficient, but if you buy a house, you definitely need liability insurance and home insurance. Suppose a roof tile blows off your home and falls on your neighbor's car, you can use your liability insurance for this. Therefore, make a comparison and then look not only at the premium you get for the value of your contents. Also look at other points, such as the ability to get all your insurance with this insurer, the quality of customer service, the additional options they offer you and the terms and conditions. The idea is to find an insurer that is affordable, but at the same time gives you peace of mind and makes you feel that you are covered for every situation.

Reporting changes to your household contents.

You now know what your contents insurance covers. If your contents change, then it is wise to talk to your insurer about this. If you purchase solar panels, then it is up to the insurer to determine whether this is covered under your contents, for example, and if it is not, then you will need separate insurance or you will have to switch. If you purchase an expensive piece of art, plan a renovation, have your kitchen updated, install a solar water heater or take a Jacuzzi, it is always wise to go over your new situation with your insurer and compare it with your policy. Some adjustments may then need to be made, so that you are once again fully covered for all the aforementioned occurrences. With a good home contents insurance policy, you can be sure that your belongings are insured and that in a particularly unpleasant situation, at least you no longer have to worry about how to go about compensating for the losses.