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Home & Content Insurance

Home & Content Insurance

Home & Content Insurance

It takes time and resources to build your dream house and furnish it with beautiful things. A home not only houses your family, giving them a sense of security, but it also houses valuable things and documents. It can be heartbreaking to see what you have built for years go up in flames or is destroyed with nothing to salvage. Home and content insurance is here to help remedy such a situation and help you get back on your feet should an awful eventuality happen.

Knowing that someone will bear the risk for you gives you sound sleep and less anxiety because the insurance company covers you. This article will explain what home and content insurance is, who needs it, and how you can get a cheap cover. 

What is Home & Contents insurance?

You can decide to take home insurance and content insurance as stand-alone covers, or you could use a combined policy that covers the house and everything in it. Home content insurance protects you against damage, theft, or loss of your personal and home valuables.

Your belongings will be protected from things beyond your control, such as theft, fire, floods, storms, and water leaks. The cover can also cover items lost or destroyed outside the home; for example, if your golden watch was stolen during vacation, you can claim it as items covered under home and content insurance. 

Home and content insurance can also covers the possession of your close relatives living with you. However, it does not cover guests items or those temporarily staying with you. Content insurance can come in handy when a flood has swept through your house, a thief has robbed you of valuables, or fire has razed down the house. Instead of starting from ground zero, the cover will ensure you are restored to the original position like nothing ever happened. 

Why Do I need Home and Content Insurance?

Insurance is here to help you recover from a loss of something valuable: the building or its content, in case of destructive events. If you own a home, you will need the combined policy to cover your properties, including the content of the home. With home insurance, you will not bear the burden of loss alone. Content insurance can also benefit those who rent a house and the relatives they live with. 

What is Covered by Home and Content Insurance?

Home insurance covers all aspects of your home: the building and the content in it. Therefore, home and content insurance are divided into two categories: building insurance and content insurance. 

Building Insurance

This insurance category covers the home’s permanent fixtures, such as walls, roof, bathroom fittings, floors, and ceilings. It also includes coverage of sheds, garages, and fences around your home. On its own, this policy does not cover the content of your home.

If you are financing a mortgage, lenders will necessitate that you acquire building insurance since no financial institution will want to repossess ashes or wreckage in the invent of fire or other damaging events. However, if you have rented, you should not concern yourself with the building insurance because the landlord should cover the building. 

Content Insurance

In the event of floods, fire, or any causes of damages beyond your control, you could incur tens of thousands of dollars trying to replace all the valuables lost. Some people never recover from the shock of such a loss. This is where content insurance proves helpful as it sorts all the insured stuff you have lost.

Content Insurance policy covers the following:

  • Furniture- chairs, tables, wardrobe, sofas, and beds
  • Floor coverings- rugs and carpets
  • Soft furnishings- cushions and curtains
  • Electronics- laptops, TVs, game consoles, and phones
  • Eating and drinking- Utensils, glasses, cutlery, food, and drinks
  • Appliances- Ovens, fridges, washing machines, hobs, and microwaves
  • Valuables- ornaments, jewelry, and art 
  • Sports and Leisure – bikes, sports equipment, toys, books, and computer games
  • Garden and DIY – Mowers, garden furniture, pools, hot tubs, and ladders
  • Linen – clothes, shoes, beddings, and towels. 

If you are a homeowner, it is advisable to take combined home insurance that covers the building and its content since it is cheaper than separate policies. Nevertheless, you could only concern yourself with content insurance if you have rented since the landlord should insure the building. 

Who Will Benefit from Home and Content Insurance?

Content insurance is not mandatory for anyone; however, protecting your belongings from unforeseen occurrences is a noble idea.

Who Needs A Content Insurance. 

  • Homeowners – A homeowner will benefit from combined home insurance to protect the building and its content
  • Renters – Content insurance will cover their possession 
  • Lodgers – If you are a lodger, you can go for lodgers’ insurance to protect your valuables during your stay at a restaurant or a guest house.
  • Students – Since they live part of the year in flats or halls, they could take content insurance designed for students. 
  • Landlords – landlords with buy-to-let owners require a different policy of their properties covering the building and the content.

Types of Contents insurance

Before taking a policy, you should first determine how much coverage you need, which is the amount it will cost you to replace all your possessions. Ensure you have included everything so that you do not under-insure yourself. If you are taking content insurance, incorporate flooring or carpets and the content of your shed o garage.

You also do well to consider several quotes from different companies before settling on what meets your needs with favorable terms. 

Bedroom rated and Sum-insured Policies.

Insurance companies usually work home content policies based on the rooms in the house (bedroom rated policies), or they could use the total value of all your possessions and content of the house (sum-insured policies). Bedroom-rated policies tend to be expensive than sum-insured policies, but they could cover more. 

When choosing which policy to go for, you could compare several things, including what the policy covers, the premium, the excess amount you must pay before compensation, the no claims bonus if you do not claim, and any additional terms and conditions. 

Things to think about when purchasing Home and contents insurance

Your home and its content are the largest assets you will ever own; therefore, you need adequate insurance coverage against unexpected loss. Under-insurance can result in serious long-term financial problems for you. Though getting cheap home and content insurance does not equate to affordable insurance, it is wise to conduct a complete search before committing to one company. Below are things to put into perspective before buying a home and content insurance.

Types of coverage

Take time to read the policy to know what is covered and determine what you need the most. For instance, if you stay in a high-risk flood zone, you do well to choose a company offering flood coverage. 

Sum insured

Make sure that the true value of your property is insured, taking into consideration things like recent renovation in the house. If this sum is inadequate, you will risk a rateable proportion of the incurred loss.  

The claim process

Before committing, ensure that the company has a transparent claim process. This will 

help you get your reimbursement faster so that you can reestablish yourself. 

Policy’s fine print

Carefully read the policy’s terms and conditions. You will understand charges, associated fees, limitations, and exclusions. If you do not understand something, contact your agent. 

Best Practices When Buying Home and Contents Insurance

Be honest

Honesty is key when answering policy questions during insurance applications. If you did not include something valuable, a future claim during loss could be denied. 

Read the small print.

Some insurers often include several exclusions to the policies; therefore, make sure you carefully go through the print. 

Update your policy

If you have bought new items of value exceeding the single item limit in the policy, ensure this is updated to get adequate cover. A series of big purchases would necessitate you to increase the sum insured. 

Don’t skimp on the cover.

Make sure you are purchasing the right policy rather than quickly taking the cheapest policy around. If you get a policy that does not adequately cover all your possession, you may not get a payout on what you claim for. 

Compare insurance policies

Use comparison websites to help shop for the best coverage with a good deal. You can do this yearly if your policy is renewable. Automatic renewal without examining other options could give you a raw deal. 

Best Home and Content Insurance Companies in 2021

When purchasing a home and content insurance policy, it is good to consider each company’s attributes, such as handling claims, average annual premiums, customer satisfaction, coverage options, and financial stability. We will use a 2021 study by J.D. Power U.S for Home Insurance to gauge customer satisfaction and results from a 2021 study by property Claims satisfaction to establish financial stability. 

USAA

USAA sells home insurance exclusively to current and ex-military members and their families. It has consistently ranked top for its excellent customer service, garnering the highest score from the J.D. Power study.

In addition to its average premium for home and content policies being below the national average, it offers insurance discounts to some homeowners. Homeowners can also benefit from savings for those with no claims for five years. 

Lemonade

This insurance company prides itself on adopting artificial intelligence and a technological approach to insurance. It provides home and property owners with a digital platform, offering low-cost insurance plans. Lemonade has a lower average complaint index (0.88 scores when the industry’s average is 1.00), as indicated by the National Association of Insurance Commissioners (NAIC).

Lemonade operates in many states, including Colorado, Connecticut, Maryland, Massachusetts, Tennessee, Texas, District of Columbia, Georgia, Arizona, California, Oklahoma, Oregon, New York, Ohio, Illinois, Indiana, Pennsylvania, Virginia, Iowa, Michigan, Wisconsin, Missouri, and Nevada.

Amica Mutual         

Amica is your home insurance company if you are interested in a partner that focuses on customer service, thus giving you peace of mind. Though it has a higher premium above the national average, it gives you the value of your money through excellent customer service.

The J.D. Power study gave this company the highest ranking on customer service, with many policyholders happy with Amica’s claims service. It has been ranking top for the past nine years in a row from 2012 to 2020 for how it handles payments. It also has the good financial strength, meaning that your contributions are safe. 

Allstate

This home insurance company is considered one of the best home and content insurance companies in the United States. It is good in helping policyholders get around their coverage needs, providing educational resources to guide first-time buyers navigate the home insurance buying process.

To ensure you cover all your bases, they have a wide range of insurance policies, including renters’ insurance, landlord insurance, and condo insurance. 

Allstate’s standard home and contents insurance policies will help you repair or pay damages due to certain risks, such as theft, windstorm or hail, fire, frozen plumbing, falling objects, and water damage from appliances, water heaters, plumbing, or cooling systems.

J.D. Power gave it an average customer satisfaction score, while AM Best indicated that the company has an A+ score on financial strength. 

Safeco

It focuses on home repair work, guaranteeing material, and labor work warranty to policyholders.  Safeco gives customers several home and content insurance endorsements, allowing clients to tailor their insurance coverage to meet their unique needs.

It offers to perform repairs in the event of home damage. It also covers personal and personal liability, paying for losses on personal belongings and damages done to your home. The content of your homes, such as furniture, equipment, appliances, documents, and clothing, are covered by Safeco so that you do not worry. 

Conclusion

Your home and its content have taken time and money to build and should be considered in the insurance coverage. You do not want to be caught with the risk of fire, theft, or floods in complete shock with no cover. However, you should take your time to thoroughly search for the best insurance offering you quality and adequate coverage. Ensure you read through the policy content to understand what the company under consideration is covering before committing. 

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