Home contents insurance is a specific part of housing insurance
Home contents insurance is a specific part of housing insurance that can protect you in the event of damage, fire, or theft of your home contents. It would be rare to find a home owner out there who doesn’t have some kind of building insurance policy, but you might be surprised at the number of people who don’t have a comprehensive policy covering their home contents. In an unexpected event could you afford to replace all of your belongings? Few people could, so to protect yourself and your family, signing for a home contents insurance policy is one of the smartest decisions that you could make.
Why Home Contents Insurance is Necessary
In the event of a burglary, natural event, or accidental damage, some or most of your belongings could be lost or destroyed. Imagine the cost of replacing televisions, clothing, furniture, computers, electronic equipment, kitchen appliances, and even large appliances like refrigerators and washers. The cost of even a moderate burglary could run you in to the tens of thousands, sometimes even hundreds of thousands of rand. Home contents insurance is a necessary financial security net that protects you from significant financial loss.
How to Choose Contents Insurance
Not every home contents insurance package is the same, and you may have to shop around to find the best package that suits your needs, while remaining affordable.
These are the key considerations to make when you are shopping for the best policy;
- Ease of the Claim Process: In the event that you need to make a claim, how easy will it be to process and get approval for that claim? Pay close attention to requirements (including legal requirements for robbery or burglary) and try to choose a provider that has the most straightforward, and stress free claim process.
- Individual Item Coverage, Lump Sum, or Mixed: Some policies can let you specify a total value, or even set specific items that will be covered by your policy. If you want broad coverage then a lump sum may be ok for you. If you have specific valuable items like collector’s pieces, musical instruments, or artwork, then individual item coverage is a better idea. Most families will benefit from a mixed policy, but find the one that works best for your situation
- Coverage of Items Lost or Stolen outside of the Home: Some items like cell phones, laptops, and tablets may be covered even when you’re away from home. If you own small electronic devices for personal use, enquire about this type of coverage with the companies and brokers that you speak to. Coverage on these items can protect you from loss, theft, and robbery.
Insurance of any kind is a safety net. Without insurance you risk massive financial burden when the unexpected happens. With smart planning and the right insurance policy, you can protect yourself and your family from the financial strain of replacing stolen, lost, or damaged household items and personal property.