Whether you reside in a one-room flat or a condominium, it is where your heart stays. Your home is a safe haven for you and your loved ones, including your pets. It consists of valuable items such as art pieces, TV, speakers, expensive furnitures, precious jewellery, and so on. Can you imagine losing all of these in a fire or theft? It would cost you a bomb to pay for replacements. Hence, it is of utmost importance that you protect your house against any unfortunate event.
Definition of home contents insurance
A home contents insurance policy covers everything, starting from your household contents and your personal belongings, to renovation and replacements that you may need for your house. This plan provides coverage for loss of items due to unforeseen events like burglary, fire, flood, explosion or any kind of malevolent acts of an outsider.
Types of home content insurance plans
There are two types of home contents insurance plans – All Risks and Insured Perils.
All Risks policies offer coverage for an array of causes along with accidental damage, whereas Insured Perils cover only the items damaged by the causes mentioned in your policy document such as bursting of water pipes, fire, explosion, and so on. The All Risks plans have policy exclusions that you should know about.
What do the home contents insurance plans cover?
Here is a list of items that home contents insurance plan covers:
- Home contents: The policy provides coverage for the damage of your flat-screen TV, precious jewellery, expensive rugs, furniture, electrical appliances, your clothes and shoes.
- Renovations or improvements: The plan covers your home renovation as well, if the internal structure of your house is damaged due to covered events like fire, flood or natural disasters. This plan also covers modifications made in the kitchen or bathrooms.
- Temporary accommodation expenses: If your house is severely damaged and becomes uninhabitable, the home contents insurance plan will give you financial support in the form of weekly or monthly pay for a temporary accommodation while your house is being reconstructed/repaired.
- Accidental damage of glass: In case any of your fixed glass, light fittings or mirrors get damaged accidentally, you can claim to get them replaced.
- Contents in your fridge: Along with your fridge, the contents inside your fridge like frozen steaks, fruits, vegetables, etc. are covered under this plan in case of a power outage due to poor weather.
- Personal liability: If you accidentally cause damage to your neighbour’s property, then the home contents insurance will cover the medical expenses or property damage required for you or the neighbour.
- Loss or theft of debit cards, cash or credit cards: The home contents insurance plan covers for the loss or theft of your cash, debit or credit cards. The plan also provides coverage in case of any illegal use of your cards made for purchases.
- Damage to personal documents: The policy takes care of the replacement costs of your lost or damaged personal documents like passport or identity cards.
- Loss of pet: If you lose your pet in an unfortunate event, you can claim for the loss.
- Accidental death overseas: You or your beneficiaries are eligible to get a death benefit if you or your spouse accidentally die, overseas.
- Protection against rent: If you are a landlord and your tenant fails to pay the rent or escapes after causing damage to your personal property, then the plan will reimburse you for the loss of rental income.
Home contents insurance policy exclusions:
Given below is a list of some of the items that the home contents insurance policy does not cover:
- Loss/damage of personal property due to nuclear war.
- Flawed design or workmanship.
- Loss or damage of personal property due to the act of terrorism.
- Disappearance of an item in a mysterious manner.
- Loss or damage of personal property due to a government authority activity.
- Wear and tear or gradual deterioration of your items.
- Shock waves caused by an aircraft.
- Loss or damage of personal property while your building is being repaired or restored.