A quick guide to home contents insurance
Are you renting a home? If yes, have you opted for contents insurance? Wait, did you think insurance was your landlord’s responsibility? While the structure of your house is covered under the home structure insurance (to be availed by the homeowner), the valuables inside your home also need safeguarding.
Leaning against your belongings, like the man in this picture, may protect them for a while. However, it does not work forever. Content insurance helps you protect your furniture, appliances, jewellery, clothing, etc. from financial losses due to mishaps. In short, it covers any article that you would carry along with you while shifting homes.
Though not mandatory, it is prudent to opt for a content insurance policy. Here are five reasons why it is important to insure your valuables.
1. Protection from Prowling Perils
Unlike guests, disasters come calling without invitation or warning. With contents insurance policy, protect yourself from monetary losses due to natural disasters such as earthquakes and floods.
In addition, losses due to any man-made calamities, from aircraft crash damage to fire, are covered under this policy. You can even opt for customizations, which include cover against damage of belongings due to terrorist attacks or riots.
2. Hassle-free vacations
Carry only your luggage of essentials for the vacation, not a baggage of trepidations for your assets back home. Where burglar alarms could fail, your insurance policy can help.
It covers losses due to thefts or break-in attempts, including loss of valuables such as jewellery, gold, silver and precious stones kept under lock and key.
However, note that it is not applicable if your home has been unoccupied for more than 30 days, unless the insurance company has been notified in advance.
3. Cover for your cherished possessions
Remember how much time and money you spent to pick out the right music system? Or that precious ruby ring? Spend a little more to ensure it won’t go waste. Pick up an insurance policy that addresses your financial needs without compromising on your future joys.
While no one can assure that your belongings will remain with you undamaged, lifelong, an insurance policy can help you replace your precious assets, in case of any untoward incidents.
4. Serenity at home
A home at a tranquil location promises peace of mind. However, knowing that your belongings are secured against unpredictable losses, brings additional comfort. Insure your valuables and be at ease, while you are home or on a holiday.
5. Spend now to save later
Yes, you read it right. Spending a little extra to insure your contents now, can help you save a lot in the long run. You may not think so, but your belongings are actually worth more than you imagine. To get a realistic picture, add up the replacement cost of your jewelry, TV, refrigerator, washing machine, other appliances and furniture at home.
A big number? Now, think of how much you will need to spend again to replace these, in case of a disaster. Instead, spend small home insurance premiums now and get a helping hand for bulk expense later. Using the contents insurance policy, you can claim for your losses, based on the sum insured.
Remember that it is neither practical nor possible to think of individual foolproof solutions for each potential danger your home might face. The most convenient and comprehensive method is to insure your valuables. Before a mishap strikes, evaluate the options available and choose the policy that best suits your requirement.