What does contents insurance cover

Having insurance is a great way for a business or family to protect their assets.  The accumulated possessions of a family can be lost in a few minutes in the event of a fire or flood. Replacing these possessions can be costly and almost impossible in most cases without coverage.  A quick tour of the home shows most people just how much money could be lost to them in an instant under certain circumstances. Insurance is a great investment in a more secure future.  But what does contents insurance cover exactly?

Answering this question makes looking for the right carrier easier.  The easiest definition of contents insurance is that it covers those things within a dwelling that are not an actual part of the building. If you consider that the dwelling’s furnishings, toilets, sinks, tubs, built-in light fixtures and pipes are covered by the buildings insurance.  All those things a family or business brings into a building which they can also remove at any time are covered by the contents insurance.  For example, while a lamp and shade can be removed from a home and taken to another would be under a contents policy, a light fitting built into the ceiling would be covered under the buildings policy. 

What does contents insurance cover? Generally, contents insurance covers those things that can be carried from the building and are not a part of the building, but are kept inside the dwelling. Those items that are so often amassed slowly over time and cherished by the families who use them are, fortunately, covered by contents insurance.

It is not a bad idea before going to an insurance company to go through the dwelling looking in each room for relevant items and making a list.  The list should include electronics such as home desktop computers, laptops, game consoles, DVD or VCR, telephone systems, television, entertainment centre, printers, copiers and other equipment.  Also listed should be those things that go with these items that would be costly to replace such as video games, computer software and DVDs. Collector items of special value should be listed as well.  Furniture should be listed including living room sets, dining room table and chairs, bedroom sets, antiques, special tables or desks, fold-out beds and couches would also be expensive to replace as a group.  Paintings and wall coverings that can be removed and didn’t come with the home should be listed. 

A detailed list should be kept of all these things within the home that count as contents and receipts should be kept in a fire-proof cabinet or safe if possible.  Having a detailed list of these items will make getting the best contents coverage possible for the least expensive price. 

While doing the walk through, the owner should be careful consider what does the contents insurance cover and what it might not and ask an insurance representative if they have any questions.