It is very important to protect yourself from the loss, damage or theft of your belongings with house contents insurance. However, there are a variety of facts that you need to take into consideration when selecting an insurance policy to meet your requirements:
1. The Cost
You can opt for a cheap household insurance policy but you need to be aware that you may not get the same value as you would from more expensive cover. You should do your due diligence and compare a variety of insurance products from a number of insurance providers.
You will be required to pay a monthly premium and you need to ensure that you are able to afford the payment to prevent the policy from lapsing. Even if you have only missed one payment or if you are late with a payment, your household goods will not be covered during that period.
2. The Cover
You need to make sure that your house contents insurance policy will cover you for loss, damage or theft. Loss could be due to an event that destroyed your household goods. Damage refers to goods that may only need to be repaired. Theft refers to the illegal removal of the goods from your residence as stated in the insurance policy.
Your insurance provider will ask you to submit a list of household goods that you require coverage for and determine the value. Alternatively, they will send a valuation expert. Only the goods listed in the policy will be covered. The value of your goods should be determined by their replacement cost and not their actual worth.
3. The Terms And Conditions
This is the section that requires careful attention. The terms and conditions specify any events or conditions that will result in non-payment. These conditions normally include natural disasters, in the event that replacement is due to your own intentional damage or in the event that you did not adhere to all the other terms and conditions attached to the policy.
Your insurance policy will only provide cover while the goods are in your home. If you are moving or should the goods be out of the home for any reason whatsoever, you should contact your insurance provider for additional cover.
4. Your Claim
When you submit a claim to your insurance provider, they will investigate the matter before covering your expenses for replacement or repairs. If you disagree with the amount they offer then think about asking for more. PPI guy Martin Lewis has lots of information on what to do in that situation and it's available on his website along with how to claim back PPI, CPP and other insurance matters.
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