There are two types of contents insurance:
- Indemnity or ‘wear and tear’ is the cheaper of the two policies. Premiums are low because insurance providers deduct certain amounts of money for the general wear and tear to an item when you make a claim. The amount you are paid by the insurance company will reflect the condition of the item.
- The ‘new for old’ contents insurance policy is usually the most popular choice among customers and insurance providers. This cover will ensure that your possessions will be replaced with brand new models should they become damaged, lost or stolen through a non deliberate or accidental act.
Many believe that the’ new for old’ contents insurance cover is better if you are insuring such things as electrical goods and furniture. For example, the majority of furniture suffers some general wear and tear over the years. At a little extra cost you can replace your furniture with brand new items with a ‘new for old’ contents insurance policy.
If you are considering taking out ‘new for old’ contents insurance, make sure that all the items you wish to insure are covered and that you do not end up underinsured by underestimating how much your belongings would cost to replace.
Once you have decided which contents insurance cover you would like to buy, then you can survey a range of companies’ quotes and find the best deals for you.