Home Contents Insurance

Home contents insurance can help you safeguard your personal belongings from unforeseen events. While insuring the physical structure of your home is essential, it is also important to protect the belongings in your home. This is where home contents insurance comes into play.

Accidents and unforeseen events can occur at any time. Events such as fire, theft, storms, or flooding have the potential of causing significant collateral damage. Having a cover for your belongings ensures you don't have to bear a significant financial burden to recover from such an event.

There are 5 types of home insurance:

1. Home contents insurance
2. Building insurance
3. Building and contents insurance
4. Holiday home insurance
5. Unoccupied home insurance

What is home contents insurance?

Home contents insurance is a type of home insurance policy that provides financial protection for household items. It is designed to cover the cost of replacing or repairing these personal possessions in the event of damage, loss, or theft.

There are two main types of home content covers to choose from - 'new for old' and indemnity cover.

How does home contents insurance work?

• Select a coverage amount based on the value of your belongings and make regular premium payments.
• Home contents insurance typically covers a range of perils (see below to find out what is covered) for which you can make a claim.
• In case your belongings are damaged by a covered event, the insurer will assess the value of the lost or damaged items and reimburse you accordingly.
• Reimbursement is either based on the actual cash value of the lost items or the replacement cost value.

You can buy home contents insurance as an individual policy, or club it with building insurance and get the buildings and contents home insurance policy.

What does home contents insurance cover?

Home contents insurance covers a wide range of items, including:

• Furniture
• Home appliances
• Business equipment
• Digital information
• Items in gardens and outbuildings
• Freezer contents
• Gadgets and electricals
• Cash and credit cards
• Clothing and jewellery
• Artwork and ornaments

The policy usually pays out in events, such as:

• Fire
• Theft
• Vandalism
• Earthquakes
• Water damage (excluding floods)
• Natural disasters like storms or lightning strikes
• Accidental damage to your belongings

Important things to know before making a claim on contents insurance:

• The single article limit is the maximum amount your insurance provider will pay for a single item, depending on your policy plan.
• Unlimited contents insurance lets you calculate the value of your home's content and set the coverage amount. The coverage amount is unlimited.
• Mobile phones are covered under standard home content if they are damaged or stolen during a covered event. You must add an away-from-home cover to your policy if you want your phone to be covered outside your home.

What's not covered by home contents insurance?

Items and events that are typically not covered by contents insurance include:

• Damage due to normal wear and tear or ageing of your belongings.
• Damage from faulty workmanship, such as faulty plumbing or electrical work.
• Certain natural disasters like earthquakes, floods, or hurricanes.
• High-value items like jewellery, artwork, or collectables.
• Cash, banknotes, or currency.
• Business inventory in your home.
• Damage caused by pests or vermin.
• Negligence or intentional damage caused by the policyholder.

Risks covered by home contents insurance

Common risks that are typically covered by home contents insurance:

• Damage caused by fire and smoke, including damage from accidental fires within your home.
• Theft or burglary of your belongings, both from your home and in some cases, from other locations such as a storage unit.
• Vandalism and malicious damage to your personal belongings.
• Damage caused by water such as burst pipes or leaking appliances.
• Damage caused by storms.
• Damage caused due to impacts such as falling objects or vehicle crashes.
• Damage to your belongings resulting from subsidence or structural damage to your home.

In addition, it’s recommended to consider what a home insurance policy covers in general and make an informed decision.

How much does home contents insurance cost?

The cost of home contents insurance depends on:

• The amount of coverage you need
• The value of your belongings
• The location of your home - certain areas have higher risks
• The deductible amount
• The security measures installed in your home
• Your insurance provider's rates
• Any additional coverage you add to your policy plan

As you learn about home contents insurance, it's essential to be aware of key factors that influence your premium cost and valuable tips to save on your home insurance policies.

Planning on buying home contents insurance?

Home contents insurance can help you protect your belongings. It is important to fully understand the terms of each of the policy plans available before picking one that's best suited to your needs.

Use Paddy Compare's services to get a clearer idea of what to opt for. We will do the hard work for you and put you in contact with home insurance brokers that are ready to help and provide you with great quotes.