home and contents insurance information

Provides information on home and contents insurance in the uk including liability coverage.

Home & contents insurance refers to the insurance policy that offers protection against theft and property damage, such as it may incur from natural catastrophies, like fires, storms or earthquakes.

Most policies are based on a combination of liability and casualty insurance coverage. Casualty coverage provides payment in the event that the insured property (home, garage and other buildings on it, with their contents) is damaged or destroyed as a result of one of the acts covered by the policy. Thus, it is very important to know exactly what the policy covers and what it excludes, and to include by a special rider (additional coverage) whatever may constitute a risk for that home. In areas prone to natural disasters – floods, windstorms or earthquakes – a separate policy will most probably be needed to cover those risks. On the contrary, there are things that need not be included - for example, the land the house is built on does not need to be insured against theft or disasters

Liability coverage provides payment in the event that a person is injured or dies on the insured property, and/or in case that someone else’s property should be harmed as a result of something belonging to the insured property (for example, if your dog bit the mailman when he was delivering the mail).

Policies generally include some coverage for the possessions inside the home, too. Some companies automatically assign a percentage of the home’s insured value as coverage for personal possessions (some 50%, others 75%). But most policies also have a limit of coverage for certain items – such as jewelry, guns or computer equipment. So if that limit is exceeded, or if the possessions include items that are not covered under a typical homeowner’s policy (such as home-based business equipment), it is best to request additional riders, for those to be replaced as well, in the event of a loss.

Finally, home & contents insurance policies fall into two categories: one, that is based on a custom value/market value plan, insuring the home for its approximate market value, which the person insured would receive in the event of a total loss; the other type, a replacement policy, insures the home for the amount it would cost to build another like the current one.