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5 reasons why having content insurance benefits you

Published on December 1st, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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You work hard to turn your house into a home by installing personal possession that makes your home look and feel like you. It could include possession such as clothes, furniture, computers, equipment tools and more. There are many unexpected events such as a storm or a fire breaking out that can damage your belongings, or have all your possessions stolen overnight. With content insurance you can rest assured in a home that is insured. Here are five ways content insurance benefits you.

There are different types of contents insurance

There are two main types which are; replacement value and new for old. The general policy that is used is the new-for-old cover, which means that any of your possessions that were lost or damaged are replaced with new ones which have a higher dollar value. The benefits of this are that you get to replace any possessions that you have been complaining about. The catch is that you will pay a higher premium. The cons are that if you lost a possession like a computer that has valuable information on it, even the latest edition won’t return it. It’s advisable to opt for a new for old policy than a replacement value, which won’t work in your favour as some items depreciate over time.

It covers almost everything

Not only does content insurance cover your possessions that are at home, but it can also have you covered for personal possession or valuables you might have away from home. You will have to check with your insurer to see what is the limit for unspecified items so you don’t feel like you are being cheated when it’s time to claim. The cons to this is that it usually doesn’t cover for items that friends or visitors brought onto your premises, unless if they are listed under your policy.

You can get cover for your beloved collectibles

You can take out a policy that will cover your collectibles. Jus t as long as you list them and update them on your policy. This could range from collectible stamps, DVD box sets, rare book, and an Elvis Presley’s toothbrush that you bought at an auction. You might not get the toothbrush back, but at least you will have funds to purchase more collectibles.

Renters can get cover too

If you don’t have a house but are renting you are not left in the dark. You can take out content only insurance to cover your possessions that are contained within the property. When it comes to the property being damaged by something that was not caused by you then that will be covered by your landlord’s insurance.

Get it covered by your home insurance policy

A survey conducted by the Insurance Council of Australia reported that 81% of homeowners and renters are exposed to significant financial loss because their insurers do not cover them to resume the standard of living they after the event of a crisis. Speaking to a financial advisor or using a home insurance calculator can help you estimate the cost should an unforeseen event break out leaving you with less to worry. Always set a reminder to keep your policy updated so that it benefits you.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

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