Home Contents Insurance

Home contents insurance refers to a type of property insurance which cover the contents commonly found in homes and residential buildings. The purchase of home contents insurance makes an insurance company liable to pay for the costs incurred by a policyholder when the contents of an insured property are damaged or stolen. Home contents insurance typically covers the losses resulting from fire and theft. In case of damage as a result of flood, however, it is not home contents insurance that covers the loss but a separate flood insurance policy.

In definition, home contents insurance terms refer to contents as those items which are not permanently affixed to the building, such as air conditioning units. Home contents insurance also cover more movable items, such as refrigerators, television sets, and other home appliances. In some cases, home contents insurance policies consider items found outside the home but still within the premises, such as garden fixtures, as part of home contents. Oftentimes, home contents insurance is sold as a component of home insurance. However, there are insurance companies which offer home contents insurance as a separate policy. Home contents insurance is ideal for those who live in rented apartments and condominium units.

What does home contents insurance cover?

Home contents insurance generally covers fixtures and personal property found in a residential building. How home contents is defined depends on the home contents insurance policy. In general, home contents insurance cover the policyholder's personal items which are not attached to the building permanently. As such, home contents insurance covers carpets, furniture, home appliances, and desktop or laptop computers. Some insurance companies have home contents insurance policies which cover furniture and equipment found in the garden, as these are still within the property even if these are found outside the home itself. Home contents insurance bears the cost of damage or loss to the policyholder's personal items as a result of fire and theft. Other valuable items covered by home contents insurance include jewelry and paintings. In some insurance companies, home contents insurance may be extended to home contents temporarily brought outside of the home. However, the coverage provided to these items is limited.

Why would you need home contents insurance?

If you are not covered by a comprehensive home insurance policy, which usually provides home contents coverage, you also need to insure the items inside your home. If you are currently living in a rented apartment or condominium unit, you need to have home contents insurance to protect yourself from costs arising from damage and loss of your personal property.