GWR: Finance & Insurance

Today, finding contents insurance is much easier than in the past. The internet has become a commonplace tool used by almost everybody in the country at some point, with social networking, videos and music moving more and more onto the internet. Shopping is no exception, so it is no surprise that buying insurance has become much easier thanks to the spread of the internet. Contents insurance comparisons can be made much more quickly and cheaply than they could in the past.

Most insurance companies are now included on the many comparison websites that have sprung up in the past decade. These websites are quick, easy and free to use and list the majority of insurance providers in the country. Generally, the user decides what kind of product they are and are presented with a list of suitable quotes from various companies. For contents insurance, there will be a short questionnaire to determine how much cover is required, the more items that need insuring and the more they are worth, the higher the premium will be. However, remember that a higher premium is needed to reflect the potential amount that would need to be paid out in the event of a major claim.

In the past, it would be necessary to rely on the advice of friends and relatives to get free contents insurance comparisons. For a more comprehensive overview, a professional broker, who would be paid for compiling lists of quotes, would have to be employed. Alternatively, quotes would have to obtained from individual companies, which could be extremely time consuming.

People aged over 50 often have special requirements when it comes to insuring their home’s contents. Over a lifetime, they may have accumulated more possessions than a younger homeowner and, if they are retired, they may spend long periods away from home, in a holiday home or timeshare, for example. This can push up insurance premiums however, fortunately, there are companies that specialise in providing cheap contents insurance for the over 50s.

Some of the features that might be found in a policy for the over 50s, that are less common in other cheap contents insurance policies, include: coverage for frozen food that spoils as a result of power loss to the freezer (although why this feature is considered specific to the over 50s is not clear); coverage for properties that are unoccupied for up to 90 days; and coverage for those who are staying in the property, which rises by a certain amount – such as 10 per cent – during major holidays. This extension is because older people often have grown up children who come to stay over Christmas and other festive periods.

Insurers such as Policy Expert are often prepared to give substantial discounts to customers aged 50 or over: for example, some companies assess older customers as posing a lower risk, which brings down the cost of premiums. A specialist company will often give bigger discounts, but other insurance companies may also have plans tailored to older customers. If in doubt, ask your insurance provider.

Contents insurance covers the repair or replacement cost of possessions in your house after events such as fire, flooding or burglary.  It is not compulsory to have contents insurance, although it is essential if you would be unable to afford to replace lost or damaged items yourself.  If your home contains valuable items these will need to be valued and listed in the policy.  With the unfortunate truth that one in three of us are likely to become burglary victims, it is sensible to protect ourselves against loss of possessions.

So what does contents insurance cover?  The answer is anything from the food in your freezer to the tools in your shed.  Also covered are electronic equipment and household appliances, jewellery, sports equipment, and even garden plants.

Indemnity cover is the cheapest type of contents insurance.  You will be able to claim for damaged or lost items, but depreciation will be included in their value.  It is possible to get ‘new for old’ cover, which replaces lost items with brand new versions.  You will pay more for this type of cover, but it is often worth it.

If you are worried about burglaries occurring whilst you are out and about, ‘All risks’ cover will give you peace of mind.  Items such as bicycles and mobile phones can be covered by these policies.

Finally, it is a common mistake to under-estimate the value of your household possessions.  It is worth taking the time to draw up an inventory of all the things you would like the policy to cover.