House and Contents Insurance: An Unbiased Review

House and contents insurance is a comprehensive form of insurance that gives you the greatest peace of mind in case of loss, since this policy covers both your house, including any improvements, and its contents. And you save money if you choose this coverage, since you get a single combined premium rather than having to pay premiums for two separate policies. This type of insurance may also offer a wide range of additional coverage features compared to regular policies, some of which may be standard and others available for a nominal fee.

House and Contents Insurance - Know The Facts

However, do you need house and contents insurance? While getting an insurance policy that covers your house is a must, do you really have to take out extra coverage to insure your possessions? If the value of your belongings is low enough that you can afford to replace them without much financial hardship, then you should only get house insurance. But if you have many valuable items that would cost a lot to replace if they are lost or damaged, then a joint house and contents policy would protect you from potentially crippling financial losses.

Before settling on a house and contents insurance policy, always shop around and get quotes from several providers before choosing a policy; you can get free quotes from online insurance brokers. Careful comparison may enable you to find a carrier who will give you double the coverage for lower monthly premiums than those offered by a competitor. And if you want a lower quote, consider shouldering a higher deductible. Also make sure that if you have taken steps to secure your house, i.e.by installing a security system, you make the insurer aware of them.

House and Contents Insurance - Consider Other Extra Coverage

Finally, consider what other extra coverage you would like to include in your house and contents insurance policy. These extras include accidental damage coverage in case you break something by accident or while doing repair work in your home, legal assistance coverage that pays for the cost of consulting a lawyer in case you get involved in a dispute or have to fend off a pending lawsuit, home emergency repair coverage that will pay for emergencies such as flooding or vermin infestation, and credit card protection that compensates you for losses in case your card is lost and someone uses it illegally. While many of these may be standard features in some policies, others may require you to pay more to get them. So read your policy carefully and never assume that you are getting the coverage you need unless it is specifically spelled out in the contract.

Last Modified: September 25, 2010.