Home Contents Insurance& Renters Insurance
Cheap Contents Insurance
Hi,
I'm Ed (independent agent)
Before you request a quote for cheap (inexpensive) contents insurance,
it's good to know what questions to ask, and what to
look for in the coverage offered.
Contents insurance is a great way to protect your belongings when you live in a dwelling that you don't own, such as renting an apartment. Contents insurance
covers almost all of your personal stuff and
household possessions against loss or damage.
Cheap Contents Insurance - normally covers the possessions belonging to you and to family members who live with you.
This sometimes suggests that the stuff of your partner, other half, domestic partner, kids, mothers and fathers and other close family members living with you are protected. Some insurance firms immediately include folks that are cohabiting in their definition of "family members", but you might want to check.
An acquaintance who resides with you or who is staying with you wouldn't routinely be covered, unless their name was included in your policy. There is no legal obligation for you to take out cheap contents insurance, but it's a smart move for you to do so.
Your household insurance policy usually covers damage to your stuff due to fire, flooding, and storm damage, as well as theft. Accidental damage or losses to home items are not usually covered by your insurance policy. You must compare and get a quote. Sometimes exceptions are mirrors and fixed glass in furniture and TVs. You can often extend your policy to cover random damage to all the contents of your house. You will have to pay more for this.
Most contents insurance policies give 'replacement value' coverage quote. This indicates that you'll get the full price of replacing an old item with another one if it is damaged or stolen. However some items, for instance clothing and bedding, are not often covered on a new for old basis.
Household contents insurance may also provide a lump sum of money if you or your spouse dies as a result of a fire, theft, or an accident in your home. It can also cover your legal responsibility if someone is injured or dies when they visit your property. These are all things to look for when you get cheap contents insurance.
Policies - do not usually cover personal possessions taken out of the home. For example, cameras, and jewelry or sports equipment. However, you may be able to get coverage for such items by paying extra. This is known as all risks coverage. There is usually an upper limit on the value of any single item, especially with cheap contents insurance, you get what you pay for.
You may have to get extra coverage if you want to include a very valuable item in your contents insurance policy such as jewelry or works of art. You may also have to agree to certain conditions, for example, that you should install a burglar alarm. You should tell your insurer about anything very valuable that you want to insure.
If you rent any of your possessions, for example a television set or a video recorder, it is advisable to take out insurance cover for these items. This is because you are legally responsible for any loss or damage which occurs to them. You can either take out insurance with the rental company, or check whether your own household contents policy covers them.
If you rent your home and it has some contents belonging to your landlord, for example furniture or a television set, you may be responsible for any loss or damage to them and will need to arrange insurance cover. Check your tenancy agreement to see if this is the case. If the landlord has insured the items, check to see that the extent of the coverage is adequate. Of course it's always advisable to get insurance coverage for your own possessions.
Compare contents insurance
Before you take out an insurance policy, decide how much insurance you need. This will mean working out the cost of replacing all your possessions. Ask for a content insurance quote from several insurers to help you get the best deal and compare contents insurance.
You will need to compare:
.: what each policy covers, and any exclusions (risks which are specifically excluded, for example, normal wear and tear).
.: the price of the policy. This is known as the 'premium', and will vary according to your age, where you live, how much coverage you want, and the value of your possessions.
The more valuable your possessions, the more you will pay for your policy. It's advisable to increase the value of your insurance to keep pace with the value of your goods. Some policies are index-linked in line with inflation. One thing you have control over is the deductible limit. This is the first amount of any claim, for example the first $500, which you will have to pay yourself. Some policies allow you to pay a higher deductible in return for a cheaper premium.
Some companies offer a 'no claims' bonus which increases for every year that no claims are made on your policy (up to a maximum amount). Sometimes insurers will let you transfer the discount if you want to change your insurer, but you must check your content insurance quote.
You will also need to compare the amount by which your no claims bonus would be reduced if you made a claim. Also inquire about any additional conditions, such as restrictions on your coverage if you leave your home unoccupied for long periods of time.
Things to remember
When you buy cheap contents insurance, you have to give your insurance agent, or the individual that sells you the insurance, as much info as you presumably can about anything which may have an impact on their decision to insure you, or how much to charge.
It's your responsibility to inform your insurance company of any change in your circumstances. For example, if you purchase the hope diamond and keep it in your apartment! You must do this in a timely manner and not wait until it's time to renew your insurance policy.