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.