The importance of buildings contents insurance
Building contents insurance is not a legal requirement;where new home owners must take out insurance for the building itself, contents insurance is a choice. However, as any person that has been burgled will tell you, contents insurance should be a must. This article looks at what buildings contents insurance is, why you should have it and what the various levels of cover it can provide are.
Why people take out building contents insurance
Buildings contents insurance is purchased for all manner of reasons; from homeowners that wish to protect their belongings, to the business owner needing to protect items such as computing equipment or stock.
Contents insurance for the home has become increasingly popular over the years, as families and individuals indulge in a home life of entertainment technology. The average home can now boast a wide screen television, iPad, laptop and games console. Often the home owner will not realise the total value of their belongings until they manually add them up.
The result of not having buildings contents insurance will only become evident in the event of a disaster; by which time it is too late to reconsider your options. Therefore, whilst contents insurance may seem like an unnecessary expense, should the worst happen, you will be grateful that you have it in place.
Additionally building contents insurance is not merely for burglaries, many policies also offer accidental damage. Such insurance can prove invaluable, as replacing that carpet that now has a massive red wine stain, can be a stretch too far for your monthly pay packet.
Valuing your possessions
It is important to thoroughly establish the value of your belongings before applying for building contents cover. You should make a thorough list of each item you wish to insure by going from room to room.
You should also check out the terms of your building contents insurance. For example, does it offer new for old? This is where the insurer would replace your item, for example your television, with a brand new item of the same quality. Another factor to be aware of is that the insurer may not insure pairs or sets. An example of which may be a three piece suite; should one item, the sofa for example, get damaged, then the insurer may only pay for that particular item to be replaced.
A final tip would be to photograph your items, so you have evidence of their condition should anything happen, and you should ensure that you keep the receipts of your items in a safe place.
The importance of buildings contents insurance cannot be overstated, the outcomes of a home or business disaster can be financially and emotionally crippling. By having a robust building contents insurance in place you can be safe in the knowledge that your home or business contents are protected in any eventuality.
