Contents Insurance
Home contents insurance covers all your belongings from clothing to kitchen equipment to works of art, furniture, and electrical equipment. It also covers curtains, carpets and items in your garden. Most contents policies also cover the contents of your freezer.
You
may choose between two types of policy: new-for-old or indemnity cover.
New-for-old home contents insurance means that any successful claim on
your insurance will pay for the cost of a brand new replacement. You
won't necessarily be given the money to buy what you want. Many
insurers replace items directly, partly as an anti-fraud measure but
also because they get discounts on bulk purchases.
Indemnity
cover would pay you the current value of your items, often a fraction
of the replacement cost. Such policies are often cheaper, but
potentially risky in the event of a major burglary or serious damage,
such as a fire as the cost of replacing any items lost would be more
than you may receive under a claim.