Personal possessions are the moveable property in your home that you take with you when you move to a new home.
Sometimes, fitted carpets cause some confusion - but although they are 'fitted', any harm to them is covered by your contents policy. Personal property is insured one of two ways -
• 'New for old'
For example, if your new plasma TV is stolen, the insurer will replace the TV with an identical new TV or, if the old model is unavailable, a newer one of similar specification. Not all your possessions are replaceable 'new for old', like clothes or antiques.
• Indemnity
An indemnity pay out is when an insurer pays you the original cost of the item less an amount for wear-and-tear.
The sum assured
Work this out by listing everything you own room-by-room and assigning a replacement value in case the item is lost or damaged.
Some insurers offer umbrella cover of, say, ?50,000, for all your possessions. If you have valuables like antiques or jewellery worth more than ?500, make sure they are listed separately on your policy.
Collections are considered separate items, not one item, so if you collect rare first edition books and have several worth ?20,000, list those that are worth more than ?500.
Risks covered
Contents policies cover more or less the same risks for your personal possessions as buildings insurance, including:
• Fire
• Storms and floods <br> • Theft, riots or vandalism
• Earthquakes or subsidence
• Vehicle collisions
• Falling trees, branches or aircraft parts
Reducing your insurance costs
Insurance companies are will to reduce the cost of your cover if you take on extra responsibilities to protect your possessions.
• Excess
If you pay an excess, this generally reduces the cost of you insurance as you meet an agreed amount of the loss that reduces the insurer's risk.
For instance if you agree a ?200 excess and make a claim for ?350, then the insurer will only pay out ?150, leaving you to meet the rest of the bill.
• Discounts
Many insurers reduce premiums if you:
- Put in a burglar alarm - Join your neighbourhood watch - Fit good locks to your ground level doors and windows - Build a no claims discount
Exclusions
Insurers expect you to look after your possessions, so may not pay out if they feel you could have done more to prevent loss or damage. Common reasons for declining a claim are:
• No forced entry when reporting a loss or theft
• You share your home with a lodger or tenant
• Homes are left vacant for 30 consecutive days or more
• Valuable possessions are left insecure
Home business policies
If you work from home, extend your home insurance cover for extra risks that may arise from loss or damage to:
• Office furniture
• Computers and office equipment
• Public and employer's liability if you trade as a partnership or company
• Business interruption protection for losing money because you can't run your business due to a problem, like flooding
Do check you don't have double cover from your home insurance cover and home office cover by trying to have the same company for both policies.
Author: David Thomson
About the author:
David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.
Article source: Free Insurance Articles.
