Contents Insurance

Contents insurance refers to a type of insurance which protects the policyholder from losses associated with personal belongings inside the home or property. With contents insurance, the insurance company bears the costs on behalf of a policyholder when the contents of the policyholder's home are damaged or stolen. By definition, the contents referred to in a contents insurance policy are those personal items which are not permanently fixed to the home, such as an air conditioning unit. However, contents insurance may also cover those other items inside the home which are more portable, such as furniture and home appliance. Some contents insurance policies may even include fixtures located outside the home but still within the property, such as garden fixtures. In most cases, contents insurance is treated as part of a home insurance policy. There are insurance companies, however, which sell contents insurance separately. Most likely, the people who may be interested in buying a separate contents insurance are those renting apartments or homes. Anyone who plans to buy a contents insurance policy may inquire from various insurance companies if they sell it separately from a more expensive home insurance. There are also insurance websites from which a potential policyholder can get contents insurance quotes.

What does contents insurance cover?

Contents insurance provides insurance coverage for fixtures and other personal belongings found inside the home. The definition of contents covered in contents insurance mainly depends on the type of policy and the insurance company from which the policy is purchased. Although most companies provide contents insurance coverage only for those items not permanently fixed inside the home, some companies allow limited coverage to items which are more mobile, such as desktop computers and television sets. Some contents insurance policies also cover contents found outside the home but still within the premises, such as fixtures found in the garden or backyard. Contents insurance bears the costs incurred by the policyholder when personal belongings inside the home are damaged in a fire or are stolen. In this context, contents insurance may also cover other valuable items inside the home, such as jewelry. There are also some insurance companies which give limited coverage to contents temporarily brought out of the home.

Why would you need contents insurance?

If you do not have a comprehensive home insurance, you need to protect yourself from costs arising from the loss or damage of your personal belongings and valuables due to accidents, fire, or theft. Especially if you are renting an apartment or condominium unit, a contents insurance policy will be more appropriate for you.