Share Button

What is Home and Contents Insurance?

Insurance protection policies are commonly known as “general insurance” policies and are taken out by consumers against an event that may or may not happen.

And, home and contents insurance is one such policy that covers property inside and outside your home.

There are three main insurance protection policies:

1. Home Insurance

It protects the structure, the fixtures and the fittings in your home. It can provide cover for the costs associated with loss or damage to your home against things that are out of your control, such as damage from natural disaster (e.g. storms and bushfires).

2. Contents Insurance

It protects your belongings and can provide cover for the costs of replacing or repairing your unfixed household items (e.g. your furniture, clothes, appliances, your priceless valuable jewellery and family assets). Your contents and your personal belongings are the things that make your home, and you want to be sure that they are safe and secure. Usually, this insurance policy is sold alongside home insurance. But it can also be purchased as a stand-alone policy, this is especially beneficial if you are renting rather than owning your home.

3. Home and Contents

Both the policies are often bundled together by insurers as a “Home and Contents Insurance” package known as an all-inclusive home insurance policy that will protect your home and the personal belongings inside your home.

Do all Homeowners need Both Insurance Policies?

This is an interesting question that is asked by many consumers. The type of policy you need will depend on whether you are renting or whether you own your own home, for example:

>> If you are a homeowner or landlord, you will usually need both the policies, and

>> If you rent, you will only need contents insurance policy

Remember – All homeowners will need home insurance policy, but contents insurance policy is for everyone.

What are the Different Types of Home and Contents Insurance Cover?

Consumers are often confused with the different types of home insurance cover and contents insurance protection policies to choose. Here is a list of the different types of policies available to decide from:

For your home insurance protection plan, you need to work out if you want the following insurance cover:

>> Total Replacement Cover – this type of cover will include all the costs to rebuild your home to the standard it was prior to damage, or

>> Sum Insured Cover – this is more common and will provide cover up to a set amount

For your contents insurance protection plan, you need to understand the two main types of policies, such as:

>> A policy that covers the value of your contents, or

>> A policy, which enables you to replace your contents with new items (e.g. “New” for “Old”). It is important to remember that “New” for “Old” policies tend to be more expensive

So, these are the basics of home and contents insurance. Remember everything mentioned in this article when you start looking for insurance policies to protect your home and personal assets.

Home and Contents Insurance

For more information: home insurance and contents insurance.

Article Source: http://EzineArticles.com/8693049