Contents Insurance

Last Updated on Thursday, 25 February 2010 11:46

Attention: open in a new window.

This insurance is to cover household contents & personal belongings.

When you live in a flat with people you don’t know so well security can get a bit lax …windows left open or unlocked …maybe unfamiliar people visiting. You may not have considered getting insurance for your gear – you may not even know you can – but it’s a decision that could save you (or your parents) thousands.

Insurance doesn’t just protect you from thieves; it can also cover you for unpredictable events like a fire, earthquake or flood. Some companies won’t insure individual rooms in flats, so shop around. The premium for a contents insurance policy depends on where you live, your age, the number of people in your flat and how much of your gear you want included in the policy, but expect to pay at least $180 a year. Don’t worry if you can’t pay the full amount up front, most companies have an installment option.

What you get

Contents insurance policies differ from company to company, but most provide the same basic coverage options: loss or damage caused by specific events like theft, fire, flood, storms or natural disasters
Replacement of your property at ‘indemnity value’
‘Actual value’ protection for collections or special items if you have specified them in your policy
Legal liability for damage to someone else’s property
Temporary accommodation costs

If you’re under 21 and living in a hall of residence, your may be eligible for limited cover under your parent’s contents insurance. Get your parents to check their policy before you go organising one for yourself.
You’re likely to choose a policy based on price, so you’ll probably opt for a lower level “economy” or “standard” package. These are paid out based on ‘indemnity value’, which means the insurance company will pay out based on the item’s age and condition just before the claim.

You’re not covered if:

You make a claim for theft, but the thief got in through an open door or window.
Your stuff is stolen by a flatmate because the flatmate has a key.
People who come into your house (potential flatmates or even friends) steal your property. This isn’t ‘technically’ breaking and entering because the person was invited into the house and you knew they were there.

Tips:

Make a list of your possessions – clothes, jewellery, CD’s, games, electronic gear etc… Make sure you note the serial numbers on your electronic gear, and the approximate value of each item.
Keep receipts from large purchases as proof of ownership (computer, stereo etc…) > If you’re really keen, take photos of valuable items.
Ask about a package discount if you already have car, health or life insurance with the company.
If you have a burglar or smoke alarm, tell them – it will get you a small discount. If you don’t make a claim during your policy term, you can get up to a 30% discount when you renew the policy
Opt for a higher voluntary excess. The higher the voluntary excess, the lower the premium.